Money laundering can hamper the transparency and authenticity of the digital economy. This is true, as the latest news comes from a comprehensive assessment. This assessment is related to the in-game assets. Due to this news about online gaming, financial institutions are now looking to deploy AI or ML-driven detection models. They may also try to build strong investigative teams while implementing a robust program to take decisive actions to combat money laundering.
The report by the Digital India Foundation
Essential measures were mentioned in the report by the Digital India Foundation. This includes a dedicated task force to be formed to remove all illegal operators, and establish a whitelist of legal gaming providers. This will help combat a misleading environment and incorporate principles of international cooperation and financial integrity.
The future of the Indian Gaming sector
The Indian gaming economy is growing like wildfire. However, it’s also facing a significant threat from issues like money laundering. This mandates urgent steps to be taken by the government and private authorities to ensure a sustained level of success. The steps are also important keeping in mind the robust digital economy of our developing nation.
Measures to be taken for online gaming
There are certain eminent measures to be taken ahead. This was also recently outlined in an essential report by the Digital India Foundation that governs the digital growth of the nation. The steps include forming a task force to identify all illegal operators. Combating misleading ads and a whitelist of genuine operators were other important measures to be taken.
Some other steps involved are public awareness and education provisions to help users make informed decisions and avoid platforms that engage in such deceptive practices while gaming online.
Some important facts
According to the report, financial institutions should conduct a thorough evaluation of in-game assets, use AI/ML-driven detection models, assemble capable investigative teams, put in place strong programs, and take prompt action to stop money mules. With a Compound Annual Growth Rate (CAGR) of 28% from FY20 to FY23, the Indian Real Money Gaming (RMG) industry has emerged as a major force in the global market. According to the report, the sector is expected to generate USD 7.5 billion in income over the next five years.
What is driving this growth
Needless to say, the gaming community of millions of gamers not just in India but worldwide are driving this immense growth. While this creates employment opportunities in ancillary sectors, it also poses a threat to fraud and other counter-active behaviors.
As per the report, the industry is facing plenty of obstacles that can prevent its advancements. The problem with user safety is a major concern in this regard. The most critical problem of money laundering has been highlighted now to demonstrate how in-game currencies like Bitcoin or cryptocurrencies are being used for certain illicit activities. Also, facts state that illegal betting in our nation can draw more than USD 100 billion every year. This essentially highlights the severity of the challenges being faced.
Words by Arvind Gupta
Arvind Gupta, a co-founder of the Digital India Foundation, stated “Despite regulatory efforts to curb illegal operators, many platforms circumvent restrictions through mirror sites, illegal branding, and disproportionate promises, highlighting the pressing need for stronger oversight and enforcement, ” As a matter of fact, more than 400 homegrown startups and as much as 90 out of 100 million daily online gamers pay to play online games. The booming sector employs more than 1 lakh individuals, directly and indirectly. It has the potential to create around 2,50,000 jobs by next year.
Check out Arvind Gupta’s Profile Here.
Bottom line
The timing of this research to map out the future is ideal. The analysis highlighted the following weaknesses that could make it more vulnerable: no single supervisory or regulatory body, no public external audit reports, and a lack of regulation and consistent standards. Furthermore, it claimed that insufficient enforcement measures result in inconsistent responses against infamous criminals.
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