Surge in use of crypto in drug, gold smuggling: DRI

New Delhi: The use of cryptocurrency for illicit payments and transfer of proceeds of crime particularly in drug and gold smuggling cases has surged in recent years, with stablecoins like USDT increasingly replacing traditional hawala networks, a DRI report said on Thursday.

The Smuggling in India report 2024-25 by the Directorate of Revenue Intelligence (DRI) said unlike traditional financial channels, cryptocurrencies enable rapid, hard-to-trace international transfers, bypassing formal financial oversight. This growing trend poses significant challenges to law enforcement agencies, necessitating the adoption of advanced blockchain forensics, inter-agency intelligence sharing, and specialised analytical tools to trace illicit flows and to combat associated illicit activities, it said.