GUWAHATI : With the Assam Assembly elections approaching, enforcement agencies have stepped up surveillance over the suspected use of digital assets to channel unaccounted funds, amid concerns that cryptocurrency could be exploited to bypass conventional monitoring mechanisms.

Acting on intelligence inputs, agencies including the Assam Police, Income Tax Department, and financial regulators are closely tracking suspicious crypto wallets, cash movement, and transport corridors to prevent illegal election funding.

Officials said cryptocurrencies such as Bitcoin pose a unique challenge due to their anonymity and ease of cross-border transfer. Investigators fear these features could be misused to evade cash seizure mechanisms and facilitate covert election expenditure.

“We are monitoring suspicious wallets and have strengthened cyber intelligence inputs. There are indications of cryptocurrency usage, which are under investigation,” a source said.

Authorities are particularly concerned about micro-transactions enabled through peer-to-peer (P2P) crypto exchanges, where digital assets can be split into smaller units and converted into local currency, making detection more difficult.

Law enforcement agencies are also keeping a close watch on rapid, high-volume transactions akin to UPI and mobile banking patterns. Officials said even smaller-value transfers, if frequent, are being flagged as suspicious and subjected to scrutiny, with coordination underway with banks.

The Reserve Bank of India is simultaneously monitoring OTP-based micro-withdrawals from ATMs, which can be carried out without debit cards, as part of broader efforts to track unusual financial activity.

On the ground, surveillance has been intensified across key transit points. The Air Intelligence Unit at Lokpriya Gopinath Bordoloi International Airport is on high alert, while railway stations and parcel networks are under close watch to intercept unaccounted cash flows.

Income Tax officials confirmed that intelligence teams are tracking passenger movement and consignments, particularly on routes connecting Guwahati with major cities such as Delhi, Kolkata, and Mumbai.

A 24/7 control room has also been activated in Guwahati, enabling citizens to report suspicious activities confidentially.

The heightened vigilance comes against the backdrop of significant seizures during previous elections. In the 2021 Assembly polls, authorities confiscated items worth over Rs 100 crore, including cash, liquor, drugs, precious metals, and other inducements.

Officials said that with the increasing use of digital financial tools, enforcement strategies are being recalibrated to address emerging risks, ensuring that electoral integrity is not compromised by illicit funding channels.