India Creates Crypto-Tracing Unit Amid Central Bank's Push for Ban

India has created a dedicated Darknet-Crypto Cell within its anti-narcotics task force to track cryptocurrency payments, encrypted communications, and physical dead-drop drug deliveries. The cell will use blockchain analytics, machine-learning models, and live-selfie KYC data to map illicit financial flows.

The announcement was made by Union Home Minister Amit Shah at a press conference in Panaji, Goa, on September 6, 2026. He stated that the government had initiated technology-enabled investigations targeting darknet activities, encrypted communications, crypto-payments, and 'dead-drop' delivery methods.

Shah emphasized that financial investigations would run alongside physical seizures, tracing a small street-level seizure back to the supply network and tracking large border seizures forward to end users. He noted that proceeds from narcotics were being routed into terror financing and that the government had 'broken financial chains' of drug networks since 2019.