CoinDCX completed a formal Virtual Digital Asset (VDA) awareness and investigation training programme for the Mira-Bhayander, Vasai-Virar (MBVV) Police Commissionerate on May 19, 2026, according to the Economic Times. The programme covered three formal modules: VDA Investigative Typologies, examining how digital assets move across blockchain networks; Response Mechanisms, focused on how investigators can accelerate technology-driven financial crime cases; and Collaborative Frameworks, addressing how exchanges and law enforcement agencies can coordinate more effectively.

The MBVV jurisdiction covers an urbanising corridor of roughly 1.2 million residents on Mumbai's northern fringe, a zone where the cyber cell has already handled digital arrest scams, online share-trading fraud, and phishing attacks throughout 2025.

The training sits within CoinDCX's Digital Suraksha Network (DSN), an initiative the exchange launched in March 2026 with a ₹100 crore (approximately $12 million USD) commitment. The DSN was announced shortly after co-founders Sumit Gupta and Neeraj Khandelwal were arrested on March 21, 2026, following a fraud complaint linked to a fake website, coindcx.pro, that impersonated the exchange. Both founders were released on bail within three days after courts found no prima facie evidence against them. The complainant also confirmed he had no grievance with the founders themselves.

The episode, however, brought into focus a documented problem: CoinDCX had identified more than 1,212 fraudulent websites impersonating its platform between April 2024 and January 2026. The DSN and its law enforcement training arm are a direct institutional response to that pattern.

"Law enforcement agencies are at the forefront of protecting citizens and combating emerging threats in the digital financial ecosystem," Gupta said at the time of the MBVV programme announcement (Dailyhunt / Tycoon World, May 2026).

The founders have also committed to building an open API that would share fraud intelligence in real time with law enforcement, financial platforms, telecom providers, and browser companies.

The MBVV training is one piece of a broader national shift in how Indian authorities are approaching crypto crime. Karnataka Police published a dedicated Virtual Digital Asset Investigation Guide in early 2025, the first state-level manual of its kind in India. The Bhubaneswar-Cuttack Commissionerate ran its own training in March 2026, covering Tor networks, VPN anonymisation, and blockchain transaction tracing. The Vellore-based non-profit Digital South Trust has trained more than 3,340 officers across the country in blockchain forensics, including a five-day intensive for 26 Deputy Superintendent of Police trainees at Tamil Nadu Police Academy in May 2026.

Sudhakar Lakshmanaraja, the organisation's founder, described the rationale plainly: "When they understand how blockchain works, when they can read a transaction hash and follow the money themselves, the quality of investigation improves significantly."

The scale of the problem justifies the urgency. Cybercrime reports in India reached 28.15 lakh (approximately 2.8 million) cases in 2025, a 24 percent increase over the previous year. Financial losses totalled ₹22,495 crore (roughly $2.7 billion USD). Investment scams accounted for 76 percent of those losses and 35 percent of all reported cases. The Ministry of Home Affairs' CyTrain portal, which delivers online cybercrime investigation certification to police officers, had registered 1,05,796 officers and issued 82,704 certificates.

For developers and Web3 projects with Indian users, the trajectory carries practical compliance implications. Analysts note that the training curriculum's emphasis on wallet-to-wallet tracing, cross-chain flows, and mixer identification aligns with Financial Action Task Force (FATF) Travel Rule standards, which require VDA service providers to share sender and recipient information on transfers above a specified threshold. The FATF Travel Rule is commonly cited at $1,000 USD, though India's formal domestic adoption of that precise threshold remains subject to ongoing regulatory development. As Indian officers gain proficiency in these tools, pseudo-anonymous operations could face substantially greater investigative scrutiny, analysts suggest.

The DSN's planned open fraud-intelligence API could become a shared infrastructure layer that any VDA platform with Indian users will need to account for in its compliance architecture.

India's approach is increasingly watched across the region. Pakistan's Securities and Exchange Commission, Sri Lanka's Central Bank sandbox programme, and Bangladesh's Financial Intelligence Unit have each moved toward more formalised engagement with digital asset oversight, situating India's training-first model within a broader South Asian shift.

CoinDCX was registered as a Financial Intelligence Unit reporting entity under India's Prevention of Money Laundering Act in March 2023, carrying the FIU registration ID VA00030982. It was also the first Indian exchange to publish a Proof of Reserves. As of fiscal year 2024 to 2025, 49 VDA exchanges hold FIU registration in India. The government has not disclosed how many MBVV officers attended the CoinDCX programme; neither the exchange nor the commissionerate has published that figure.

The MBVV programme marks another step in India's broader move toward preparing law enforcement for a regulated VDA market rather than pursuing blanket restriction. With investigations maturing alongside regulatory frameworks, the training-first approach signals that operational readiness, not just policy, is now on the government's agenda.