Mitali Mukherjee’s latest book, Crypto Crimes, delves into the complex and often dangerous world of cryptocurrency, painting a detailed picture of its potential and perils. As cryptocurrencies continue to defy initial skepticism and establish themselves as significant players in the financial landscape, Mukherjee’s work emerges as both timely and informative.
Cryptocurrency’s Appeal and Accessibility
Cryptocurrency is heralded for its accessibility and technological sophistication. It offers a sense of security and can be utilized both as an asset and a means of payment in various parts of the world. The ease of converting cryptocurrency into fiat currency adds to its allure, making it an attractive investment for many. Unlike conventional financial instruments, cryptocurrency presents few barriers to entry. Even with a minimal investment, such as a hundred rupees, individuals can purchase a fraction of cryptocurrency and join the ranks of global investors.
The Dark Side of Crypto: Scams and Crimes
However, Mukherjee’s book focuses on the darker aspects of this asset class. She explores how cryptocurrencies have become a favorite among criminals, including scam artists, kidnappers, extortionists, drug dealers, hawala operators, terrorism financiers, and ransomware attackers. Mukherjee meticulously documents these nefarious activities, portraying the crypto world as one devoid of safeguards, posing risks to many and potential danger to all.
Ransomware Attacks and Corporate Vulnerabilities
Two chapters in Crypto Crimes are dedicated to the threat of ransomware attacks, providing detailed accounts of how various Indian organizations, both public and private, have been affected. The list of victims includes JNPT, SpiceJet, Oil India Limited, Dr. Reddy’s, BSNL, Mobikwik, Paytm Mall, BigBasket, and AIIMS. In these attacks, perpetrators not only demand ransom but also profit from selling sensitive personal information. Mukherjee highlights the inadequate security frameworks of many Indian companies and the irrational responses of some companies under attack, including denial and retaliation against whistle-blowers.
The Rise of Ransomware-as-a-Service
Mukherjee also sheds light on the existence of “Ransomware-as-a-Service” groups, which lease technologies to other groups that carry out the attacks. Cryptocurrency plays a crucial role in these operations, providing the anonymity and convenience needed for untraceable escapes, thus scaling up this grim industry.
The Need for Standardized Regulations
The book underscores the urgent need for standardized regulations, protocols, and practices for cryptocurrencies. Mukherjee points out that cryptocurrencies, much like greenhouse gases, disregard national borders. Yet, achieving global consensus on regulation remains challenging, especially when world leaders struggle to agree on more significant threats like climate change and AI.
India’s Regulatory Landscape
In India, the regulatory landscape for cryptocurrency is fragmented. The Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), and the Ministry of Finance have yet to reach a consensus on how to approach cryptocurrency regulation. While the RBI has issued warnings since 2013, the Ministry of Finance has vacillated, considering bans, forming committees with varying recommendations, and contemplating the introduction of a Central Bank Digital Currency (CBDC). Despite announcing heavy taxation on cryptocurrency gains in 2022, which impacted the industry, the Finance Minister denied that this move legitimized cryptocurrency, asserting a “sovereign right to tax.”
Insights from the Corridors of Power
Mukherjee presents a solitary voice of reason from within the corridors of power: former Finance Secretary Subhash Chandra Garg. Garg advocates for policy-making to precede legislation, leading to well-framed and implementable regulations.
Critiques and Shortcomings
Despite its thorough research, Crypto Crimes has its flaws. Mukherjee’s storytelling can be dense and repetitive, with key points reiterated excessively. The book also suffers from a lack of visual aids such as infographics, timelines, or comparative data tables, which could have enhanced understanding. Moreover, while the book relies heavily on secondary research, it offers little original analysis and falls short in its primary research, particularly in challenging the opinions of crypto entrepreneurs.
Conclusion
Crypto Crimes makes a compelling case for regulating cryptocurrency, highlighting its potential for both harm and positive transformation. While the book serves as a valuable resource for those interested in the intricacies of the crypto world, its dense and repetitive nature may render it less engaging for casual readers. Nonetheless, Mukherjee’s work is a crucial contribution to the ongoing discourse on cryptocurrency regulation.
