Key Highlights
- India ramps up surveillance on cryptocurrency use ahead of Assam Assembly elections amid funding concerns.
- Agencies tracking suspicious wallets, micro-transactions, and transport routes to curb illicit money flows.
- Past seizures and tax data highlight the growing scale of unaccounted election funding in the region.
Enforcement agencies in India have stepped up surveillance in the state of Assam ahead of the Assembly elections, with cryptocurrency emerging as a potential route for moving unaccounted funds.
Acting on intelligence inputs, state police, along with central agencies, are keeping a close watch on digital asset activity, in addition to traditional cash movement, amid concerns that newer financial channels could be used to sidestep scrutiny.
“With digital assets offering anonymity and cross-border transferability, investigators fear that crypto transactions could be exploited to bypass traditional cash seizures and fuel illicit election spending, more in view of the quantum jump in assets of political leaders across parties,” an official source said.
Wallets, small transfers come under scanner
As per a report by The Assam Tribune, officials said suspicious wallets are being monitored, and cyber surveillance has been tightened as part of the exercise.
“We are monitoring suspicious wallets and have tightened cyber intelligence to curb the influence of hidden money flows. There is information on the use of cryptocurrency, which we are investigating,” the source noted.
Investigators are also looking at the use of smaller, split transactions to avoid detection.
“Unlike popular belief, cryptos such as Bitcoin can be split into tiny fractions, making them suitable for micro-payments. These fractions can be converted to any currency through P2P (Peer-to-Peer) crypto exchanges”.
An Assam Police official said transaction patterns, not just large transfers, are now under focus.
“Too many transactions, even in smaller amounts, would be marked as suspicious and placed under the radar,” the source said, adding that coordination with banks has been stepped up.
Banking channels and quick cash-out methods watched
Alongside crypto tracking, authorities are also watching banking channels that could be used to withdraw funds quickly.
The Reserve Bank of India (RBI) is monitoring OTP-based ATM withdrawals that do not require debit cards, a facility that can enable quick cash access without leaving much of a trail at the user level.
Officials indicated that the combination of digital transfers and fast cash withdrawals is an area of concern during elections.
Airports, rail routes under tight vigil in India
Surveillance has also been intensified across key transport points in Assam.
The Air Intelligence Unit at Guwahati airport is on alert, while teams at railway stations are monitoring passenger movement and parcels.
“This year, transport corridors are under sharper watch. Flights from Delhi, Kolkata and Mumbai, as well as trains entering from neighbouring states, are being closely monitored,” the source added.
A 24-hour control room has been activated in Guwahati to allow people to report suspicious activity confidentially.
Past election seizures show scale
Figures from previous elections highlight the scale of enforcement activity in the state.
During the 2021 Assembly polls, authorities seized items worth over Rs 100 crore, significantly higher than in 2016.
This included Rs 11.7 crore in cash, Rs 2.8 crore in precious metals, Rs 17.2 crore worth of liquor, Rs 27 crore in drugs and Rs 4.8 crore in freebies.
Separately, Income Tax officials have detected more than Rs 5,000 crore in undisclosed income from Assam and other parts of the Northeast over the past nine years.
Growing focus on digital trails in India
The attention on cryptocurrency marks a shift in how election-related financial monitoring is being handled in India.
Officials say that while blockchain transactions leave trails, identifying the people behind layered or peer-to-peer transfers remains a challenge, especially when combined with offline cash distribution.
With both digital and physical channels now under watch, agencies are widening their net as polling approaches, aiming to plug gaps that have evolved with changing financial tools.
Also Read: Indian Authorities Seize ₹2.5 Cr in Crypto in Bengal Laundering Probe
