DPDP Bill 2023 A Comparative Analysis

Misinformation spread has become a cause for concern for all stakeholders, be it the government, policymakers, business organisations or the citizens. The current push for combating misinformation is rooted in the growing awareness that misinformation leads to sentiment exploitation and can result in economic instability, personal risks, and a rise in political, regional, and religious tensions. The circulation of misinformation poses significant challenges for organisations, brands and administrators of all types. The spread of misinformation online poses a risk not only to the everyday content consumer, but also creates concerns for the sharer but the platforms themselves. Sharing misinformation in the digital realm, intentionally or not, can have real consequences.

Consequences for Platforms

Platforms have been scrutinised for the content they allow to be published and what they don't. It is important to understand not only how this misinformation affects platform users, but also its impact and consequences for the platforms themselves. These consequences highlight the complex environment that social media platforms operate in, where the stakes are high from the perspective of both business and societal impact. They are:

• Legal Consequences: Platforms can be fined by regulators if they fail to comply with content moderation or misinformation-related laws and a prime example of such a law is the Digital Services Act of the EU, which has been created for the regulation of digital services that act as intermediaries for consumers and goods, services, and content. They can face lawsuits by individuals, organisations or governments for any damages due to misinformation. Defamation suits are part of the standard practice when dealing with misinformation-causing vectors.  In India, the Prohibition of Fake News on Social Media Bill of 2023 is in the pipeline and would establish a regulatory body for fake news on social media platforms. 
• Reputational Consequences: Platforms employ a trust model where the user trusts it and its content. If a user loses trust in the platform because of misinformation, it can reduce engagement. This might even lead to negative coverage that affects the public opinion of the brand, its value and viability in the long run. 
• Financial Consequences: Businesses that engage with the platform may end their engagement with platforms accused of misinformation, which can lead to a revenue drop. This can also have major consequences affecting the long-term financial health of the platform, such as a decline in stock prices.
• Operational Consequences: To counter the scrutiny from regulators, the platform might need to engage in stricter content moderation policies or other resource-intensive tasks, increasing operational costs for the platforms. 
• Market Position Loss: If the reliability of a platform is under question, then, platform users can migrate to other platforms, leading to a loss in the market share in favour of those platforms that manage misinformation more effectively.
• Freedom of Expression vs. Censorship Debate: There needs to be a balance between freedom of expression and the prevention of misinformation. Censorship can become an accusation for the platform in case of stricter content moderation and if the users feel that their opinions are unfairly suppressed. 
• Ethical and Moral Responsibilities: Accountability for platforms extends to moral accountability as they allow content that affects different spheres of the user's life such as public health, democracy etc. Misinformation can cause real-world harm like health misinformation or inciting violence, which leads to the fact that platforms have social responsibility too.

Misinformation has turned into a global issue and because of this, digital platforms need to be vigilant while they navigate the varying legal, cultural and social expectations across different jurisdictions. Efforts to create standardised practices and policies have been complicated by the diversity of approaches, leading platforms to adopt flexible strategies for managing misinformation that align with global and local standards.

Addressing the Consequences

These consequences can be addressed by undertaking the following measures:

• The implementation of a more robust content moderation system by the platforms using a combination of AI and human oversight for the identification and removal of misinformation in an effective manner. 
• Enhancing the transparency in platform policies for content moderation and decision-making would build user trust and reduce the backlash associated with perceived censorship. 
• Collaborations with fact checkers in the form of partnerships to help verify the accuracy of content and reduce the spread of misinformation.
• Engage with regulators proactively to stay ahead of legal and regulatory requirements and avoid punitive actions. 
• Platforms should Invest in media literacy initiatives and help users critically evaluate the content available to them. 

Final Takeaways

The accrual of misinformation on digital platforms has resulted in presenting significant challenges across legal, reputational, financial, and operational functions for all stakeholders. As a result, a critical need arises where the interlinked, but seemingly-exclusive priorities of preventing misinformation and upholding freedom of expression must be balanced. Platforms must invest in the creation and implementation of a robust content moderation system with in-built transparency, collaborating with fact-checkers, and media literacy efforts to mitigate the adverse effects of misinformation. In addition to this, adapting to diverse international standards is essential to maintaining their global presence and societal trust.

References

• https://pirg.org/edfund/articles/misinformation-on-social-media/ 
• https://www.mdpi.com/2076-0760/12/12/674
• https://scroll.in/article/1057626/israel-hamas-war-misinformation-is-being-spread-across-social-media-with-real-world-consequences 
• https://www.who.int/europe/news/item/01-09-2022-infodemics-and-misinformation-negatively-affect-people-s-health-behaviours--new-who-review-finds 

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Introduction

Cybercrime is one of the most pressing concerns in today’s era. As the digital world is evolving rapidly, so do the threats and challenges to curb these cybercrimes. The complexities associated with the evolving cybercrimes make it difficult to detect and investigate by the law enforcement across the world. India is one of those countries that is actively engaged in creating awareness about the cybercrimes and security concerns across the State. At the national level, initiatives like National Cybercrime Reporting Portal, CERT-In and I4C have been established to assist the law enforcement in dealing with cybercrimes in India. According to the press release by the Ministry of Home Affairs, 12,5153 cases of Financial Cyber Frauds were reported in the year 2023, which is the second highest in State-wise Reporting after UP. Maharashtra has been highlighted as one of the States with the highest cybercrime cases for the past few years. 

In response to curbing the increasing number of cases, the state of Maharashtra has launched the initiative ‘the Maharashtra Cyber Security Project’. The purpose of this project is to strengthen the system’s defense mechanism by establishing cybersecurity infrastructure, exploiting technological advancements and enhancing the skills of law enforcement agencies. 

Maharashtra Cyber Department and the Cyber Security Project

The Maharashtra Cyber Department, also referred as MahaCyber was established in the year 2016 and employs a multi-faceted approach to address cyberthreats. The objective is to provide a user-friendly space to report Cybercrimes, safeguarding Critical Information Infrastructure from cyber threats, empowering the investigation law agencies ultimately improving its efficiency and creating awareness among common people.  

The Maharashtra Cyber Security Project aims to strengthen the department, bringing all the aspects of the cyber security system under one facility. The key components of the Maharashtra Cyber Security Project are as follows: 

• Command & Control Centre:

The Command & Control Centre will function as a 24/ complaint registration hub and grievance handling mechanism which can be accessed by calling the helpline number, mobile app or on the online portal. The Centre continuously monitors cyber threats, reduce the impact of cyber attacks and ensures that issues are resolved as soon as possible. 

• Technology Assisted Investigation (TAI):

Complaints that are registered are analysed and investigated by experts using cutting edge technologies such as Computer Forensic or Mobile Forensic, Voice Analysis System, Image Enhancement Tool, Deepfake Detection Solution to name a few which helps the Maharashtra Cyber Department to collect evidence, identify weak spots and mitigate the cyber threats effectively.   

• Computer Emergency Response Team – Maharashtra (CERT-MH):

The CRET-MH works on curbing cybercrimes which are especially targeted to affect the Critical Infrastructure like banks, railway services, electricity of the State and threats related to national security using technologies such as Deep web and Dark web analysis, Darknet & Threat Intelligence Feeds, Vulnerability Management, Cyber Threat Intelligence Platform, Malware Analysis and Network Capture Analysis and coordinates with other agencies. 

• Security Operations Centre (SOC):

The SOC looks after the security of the MahaCyber from any cyber threats. It 24/7 monitors the infrastructure for any signs of breach or threats and thus aids in early detection and prevention of any further harm. 

• Centre of Excellence (COE):

The Centre of Excellence focuses on training the police officials to equip them with desired tools and technologies to deal with cyber threats. The Centre also works on creating awareness about various cyber threats among the citizens of the state. 

• Nodal Cyber Police Station:

The Nodal Cyber Police Station works as a focal point for all cybercrime related law enforcement activities. It is responsible for coordinating the investigation procedure and prevention of cybercrimes within the state. Such Cyber Police Stations have been established in each district of Maharashtra. 

Funds of Funds to scale up Startups

The government of Maharashtra through the Fund of Funds for Startups scheme has invested in more than 300 startups that align with the objective of cyber security and digital safety. The government is promoting ideas and cyber defence innovation which will help to push the boundaries of traditional cybersecurity tools and improve the State’s ability to tackle cybercrimes.  Such partnerships can be a cost-effective solution that proactively promotes a culture of cybersecurity across industries. 

Dynamic Cyber Platform

The government of Maharashtra has been working on creating a dynamic cyber platform that would assist them in tackling cybercrimes and save hundreds of crores of rupees in a short span of time. The platform will act as a link between various stakeholders such as banks, Non-Banking Financial Companies (NBFCs) and social media providers to provide a technology-driven solution to the evolving cybercrimes. As a part of this process, the government has invited tenders and has called top IT companies from the world to participate and aid them in setting up this dynamic cyber platform. 

Why Does The Initiative By Maharashtra’s Government Act As A Model For Other States

The components of the Maharashtra Cyber Security Project and the dynamic cyber platform create a comprehensive system which aims at tackling the increasing complexities of cyber threats. The initiative with integration on cutting edge technologies, specialised institutions, expert professionals from various industries and real-time monitoring of cybercrimes sets an example that Maharashtra is well-equipped to prevent, detect and respond to cybercrimes being reported in the State. The project collaborates between government and law enforcement agencies, providing them proper training and addressing grievances of the public. By working on four key areas, i.e. centralised platform for reporting, collaboration between government and private sectors, public awareness and use of advanced technologies, the Cyber Security System in Maharashtra serves as a model for creating secure digital space and tackling cybercrime effectively on a large scale.  

Other States in India could certainly adopt similar models and achieve success in curbing cybercrimes. They need to create a dedicated response team consisting of trained personnel, invest in advanced software as used by Maharashtra, foster partnerships with companies or startups involved in AI and technology to build resilient cybersecurity infrastructures. The government of Maharashtra can extend hands to assist other states to establish a model that addresses the evolving cybercrimes efficiently.  

References

• https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2003158 
• https://mhcyber.gov.in/about-us 
• https://www.youtube.com/watch?v=jjPw-8afTTw 
• https://www.ltts.com/press-release/maharashtra-inaugurates-india-first-integrated-cyber-command-control-center-ltts 
• https://theprint.in/india/maharashtra-tackling-evolving-cyber-crimes-through-dynamic-platform-cm/2486772/ ‍
• https://www.freepressjournal.in/mumbai/maharashtra-dynamic-cyber-security-platform-in-the-offing-says-fadnavis

Introduction

Significantly, in March 2023, the Prevention of Money Laundering Act, 2002's regulations placed Virtual Digital Asset Service Providers functioning located under the purview of the Anti Money Laundering/Counter Financing of Terrorism (AML-CFT) scheme. An important step toward controlling VDA SP operations and guaranteeing adherence to Anti-Money Laundering and Combating the Financing of Terrorism (AML-CFT) regulations.

The significance of AML-CFT procedures

The AML-CFT framework's incorporation of Virtual Digital Asset Service Providers (VDA SPs) is essential for protecting the banking industry from illegal activities including the laundering of funds and counter-financing of terrorist attacks. These regulations become more crucial as the market for digital assets develops and becomes more well-known.

The practice of money laundering is hiding the source of the sum received illegally, thus it's critical to have strict policies in place to track down and stop these kinds of operations. Furthermore, funding for terrorism is a serious danger to international safety, hence stopping the flow of money to terrorist companies is a top concern for global officials.

The goal of policymakers' move to include VDA SPs in the AML-CFT architecture is to set up control and surveillance procedures that will guarantee these organisations' open and honest operations. This involves tracking transactions, flagging questionable activity, and conducting extensive customer investigations. Incorporating such procedures not only reduces the potential for financial crimes but also builds confidence and trust in the electronic asset market.

It is important to see the significance of AML-CFT procedures and the changes in the legal framework to reflect the evolving characteristics of digital currencies. These procedures are essential to preserving the reliability and safety of the wider banking system.

Notifications of Compliance Show Cause

Under Section 13 of the PMLA Act 2002, FIU IND sent adherence Show Cause Notices to nine offshore Virtual Digital Asset Service Providers (VDA SPs) as part of its dedication to upholding compliance with regulations. This affirmative step requires organisations to be scrutinised and attempted to bring them under inspection.

Governmental Response

The Director of FIU IND has addressed the Secretary of the Ministry of Electronics and Information Technology to take further measures due to the disregard of offshore firms. According to the notification, URLs connected to these organisations that operate in India in violation of the PML Act's requirements must be blocked. 

Mandatory Registration for VDA SPs

Virtual Digital Asset Service Providers (both onshore and offshore) who perform a range of operations, including the trading of digital goods for monetary currencies, the distribution of digital currency, and the management or preservation of electronic assets, are now obliged to register with FIU.

Range of Statutory Responsibilities

In accordance with the PML Act, VDA SPs are subject to several requirements, including documentation, disclosure, and other duties. One of their responsibilities is to register with the FIU IND. The primary focus is on guaranteeing that VDA SPs comply with AML-CFT protocols, hence enhancing the general reliability of the banking industry.

Difficulties with Offshore Compliance

There are many obstacles in guaranteeing that offshore organisations comply with Anti Money Laundering/Counter Financing of Terrorism (AML-CFT), chief amongst them being their unwillingness to undergo registration. Some overseas Virtual Digital Asset Service Providers (VDA SPs) have been reluctant to comply with the existing rules and regulations, even though they cater to a significant number of Indian users. There are several reasons for this hesitation, such as worries about heightened monitoring, the expense of compliance, and the apparent complexity of governmental processes. Regulatory organisations have taken steps to close the discrepancy between offshore businesses' real activities and the regulations they must follow. In addition to maintaining the trustworthiness of the economic system, resolving the issues with offshore adherence is essential for promoting confidence and openness in the market for electronic assets.

Conclusion

FIU IND has demonstrated its dedication to creating an effective regulatory framework for Virtual Digital Asset Service Providers through its recent measures. India hopes to fortify its countermeasures against money laundering and safeguard the financial well-being of its users by expanding the AML-CFT legislation to offshore firms. The continuous efforts to restrict the URLs of non-compliant companies show a proactive approach to stopping illicit activity and fostering a safe and law-abiding virtual asset ecosystem. The safety and soundness of the banking sector will be crucially maintained by laws and regulations as the digital world develops.

References

• https://pib.gov.in/PressReleasePage.aspx?PRID=1991372
• https://www.thehindubusinessline.com/books/reviews/business-economy/fiu-ind-issues-compliance-showcause-notices-to-nine-offshore-vda-sps/article67684613.ece
• https://business.outlookindia.com/news/fiu-issues-notice-to-9-offshore-crypto-platforms-writes-to-meity-for-blocking-of-urls