Cryptocurrency hawala transactions were uncovered in Kerala by the Income Tax Department during raids on multiple locations. The investigation revealed over 1,500 accounts involved in illegal digital currency operations.
The Income Tax Department raided five locations in Kerala, including an institute in Kozhikode, to check illegal cryptocurrency hawala transactions. They discovered over 1,500 accounts involved in transferring money using cryptocurrency. This raid is part of the government’s efforts to control digital currency crimes. The government is working to regulate cryptocurrency exchanges and prevent financial crimes.
The Rise of Cryptocurrency Hawala Transactions
Cryptocurrency is becoming popular because it doesn’t rely on traditional banks. But its lack of rules makes it easier for illegal activities, like hawala, to take place. Hawala is a way to send money across borders without moving it physically. It’s often used to avoid laws and taxes. Authorities are worried about this and are watching closely. Recent raids in Kerala showed that digital currency exchanges can be involved in illegal transactions.
Key Locations Targeted in the Raids
The Income Tax Department raided five locations in Kerala over cryptocurrency hawala transactions. One main target was the Calicut Trading Institute in Kozhikode suspected of using cryptocurrency while pretending to run a legal business. The authorities also raided residential properties in Kozhikode and Thrissur as part of the investigation into these illegal activities.
Authorities found more than 1,500 accounts involved in illegal activities, moving large amounts of money into cryptocurrency. The money was then sent to Dubai, raising questions about its purpose and who received it.
Yasir was found to be conducting daily cryptocurrency transactions worth Rs 5 lakh through 10 different accounts. Investigations also revealed that he had opened around 200 accounts using the names of his relatives and others to carry out these transactions.
How Cryptocurrency Hawala Transactions Work
Cryptocurrency hawala transactions do not use banks. Instead, money is sent through digital wallets and cryptocurrencies. This makes it hard to track where the money comes from or goes. These transactions often cross countries and use cryptocurrencies to hide how the money is moved.
Recent raids show that authorities are improving at finding these complex financial networks. By tracking accounts involved in cryptocurrency hawala transactions the Income Tax Department wants to stop the illegal use of digital currencies.
The Role of Educational Institutions in Cryptocurrency Fraud
The involvement of the Calicut Trading Institute makes the case more complicated. There is no direct connection to the Indian Institute of Management Kozhikode (IIMK), but people are concerned that its name or facilities might have been misused for illegal activities. It is still unclear if any individuals or institutions, including schools, will face charges related to cryptocurrency hawala transactions.
Implications for Cryptocurrency Regulations in India
The cryptocurrency hawala raids in Kerala highlight the need for stricter rules on digital currencies. The Indian government is thinking about tighter controls or even banning cryptocurrencies. This action shows the government’s focus on making sure cryptocurrencies are used legally and not for illegal activities. The ongoing investigation may set a standard for how future cryptocurrency crimes are handled. Authorities will likely keep focusing on cryptocurrency exchanges, schools, and businesses that might unknowingly support illegal activities.
For the latest updates about cryptocurrency news, visit Coin Mozo on X.
The Income Tax Department’s raid on cryptocurrency hawala transactions in Kerala is the start of a bigger effort to control digital currencies in India. As cryptocurrencies grow popular, authorities must improve their methods to stop illegal use.
More details about the transactions and involved groups are expected as the investigation continues. One thing is certain: Indian regulators are keeping a close watch on cryptocurrency hawala transactions. The government is determined to solve financial issues in the growing cryptocurrency market.
Also Read: Telegram Crypto Scam Boom: How Scammers Are Finding Success
