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DRI Report Says Stablecoins Are Replacing Hawala in Gold and Drug Smuggling

The DRI seeks tougher AML rules alongside new blockchain forensics.

Overview

  • DRI details how VPN-accessed crypto wallets enable off-book payments that support under-invoicing, misdeclaration and evasion of duties and taxes.
  • A July 2024 investigation traced a 108‑kg gold syndicate that remitted ₹108 crore to China via hawala and USDT after sales in Delhi.
  • The agency says it has begun deploying specialised blockchain analytics to trace on‑chain movements linked to smuggling operations.
  • Recommendations include stricter AML and KYC for exchanges, expanded forensic capabilities and international cooperation to blunt cross‑border laundering.
  • Indian Customs reports FY 2024–25 enforcement of 3,005 cases with 2,600 kg of gold seized and 533 arrests.