#FactCheck-Fake Frontline Cover Claiming ‘Vijay Wave’ Goes Viral During Tamil Nadu Polls

According to Statista, the number of users in India's digital assets market is expected to reach 107.30m users by 2025 (Impacts of Inflation on Financial Markets, August 2023). India's digital asset market has been experiencing exponential growth fueled by the increased adoption of cryptocurrencies and blockchain technology. This furthers the need for its regulation. Digital assets include cryptocurrencies, NFTs, asset-backed tokens, and tokenised real estate. 

India has defined Digital Assets under Section 47(A) of the Income Tax Act, 1961. The Finance Act 2022-23 has added the word 'virtual' to make it “Virtual Digital Assets”. A “virtual digital asset” is any information or code, number, or token, created through cryptographic methods or otherwise, by any name, giving a digital representation of value exchanged with or without consideration. A VDA should contain an inherent value and represent a store of value or unit of account, functional in any financial transaction or investment. These can be stored,  transferred, or traded in electronic format. 

Digital Asset Governance: Update and Future Outlook

Indian regulators have been conservative in their approach towards digital assets, with the Reserve Bank of India first issuing directions against cryptocurrency transactions in 2018. This ban was removed by the Supreme Court through a court order in 2020. The presentation of the Cryptocurrency and Regulation of Official Digital Currency Bill of 2021 is a fairly important milestone in its attempts to lay down the framework for issuing an official digital currency by the Reserve Bank of India. While some digital assets seem to have potential, like the Central Bank Digital Currencies (CBDCs) and blockchain-based financial applications, a blanket prohibition has been enforced on private cryptocurrencies.

However, in more recent trends, the landscape is changing as the RBI's CBDC is to provide a state-backed digital alternative to cash under a more structured regulatory framework. This move seeks to balance state control with innovation on investor safety and compliance, expecting to reduce risk and enhance security for investors by enacting strict anti-money laundering and know-your-customer laws. Highlighting these developments is important to examine how global regulatory trends influence India's digital asset policies.

Impact of Global Development on India’s Approach 

Global regulatory developments have an impact on Indian policies on digital assets. The European Union's Markets in Crypto-assets (MiCA) is to introduce a comprehensive regulatory framework for cryptocurrencies that could act as an inspiration for India. MiCA regulation covers crypto-assets that are not currently regulated by existing financial services legislation. Its particular focus on consumer protection and market integrity resonates with India in terms of investigating needs related to digital assets, including fraud and price volatility. Additionally, evolving policies in the US, such as regulating crypto exchanges and classifying certain tokens as securities, could also form the basis for India's regulatory posture.

Collaboration on the international level is also a chief contributing factor. India’s regular participation in global forums like the G20, facilitates an opportunity to align its regulations on digital assets with other countries, tending toward an even more standardised and predictable framework for cross-border transactions. This can significantly help India given that the nation  has a huge diaspora providing a critical inflow of remuneration.

CyberPeace Outlook

Though digital assets offer many opportunities to India, challenges also exist. Cryptocurrency volatility affects investors, posing concerns over fraud and illicit dealings. A balance between the need for innovation and investor protection is paramount to avoid killing the growth of India's digital asset ecosystem with overly restrictive regulations.

Financial inclusion, efficient cross-border payments with low transaction costs, and the opening of investment opportunities are a few opportunities offered by digital assets. For example, the tokenisation of real estate throws open real estate investment to smaller investors. To strengthen the opportunities while addressing challenges, some policy reforms and new frameworks might prove beneficial. 

CyberPeace Policy Recommendations

• Establish a regulatory sandbox for startups working in the area of blockchain and digital assets. This would allow them to test innovative solutions in a controlled environment with regulatory oversight minimising risks.
• Clear guidelines for the taxation of digital assets should be provided as they will ensure transparency, reduce ambiguity for investors, and promote compliance with tax regulations. Specific guidelines can be drawn from the EU's MiCA regulation.  
• Workshops, online resources, and campaigns are some examples of initiatives aimed at improving consumer awareness about digital assets, benefits and associated risks that should be implemented. Partnerships with global fintech firms will provide a great opportunity  to learn best practices.

Conclusion

India is positioned at a critical juncture with respect to the debate on digital assets. The challenge which lies ahead is one of balancing innovation with effective regulation. The introduction of the Central Bank Digital Currency (CBDC) and the development of new policies signal a willingness on the part of the regulators to embrace the digital future. In contrast, issues like volatility, fraud, and regulatory compliance continue to pose hurdles. By drawing insights from global frameworks and strengthening ties through international forums, India can pave the way for a secure and dynamic digital asset ecosystem. Embracing strategic measures such as regulatory sandboxes and transparent tax guidelines will not only protect investors but also unlock the immense potential of digital assets, propelling India into a new era of financial innovation and inclusivity.

References

• https://www.weforum.org/agenda/2024/10/different-countries-navigating-uncertainty-digital-asset-regulation-election-year/ 
• https://www.acfcs.org/eu-passes-landmark-crypto-regulation 
• https://www.indiabudget.gov.in/budget2022-23/doc/Finance_Bill.pdf 
• https://www.weforum.org/agenda/2024/10/different-countries-navigating-uncertainty-digital-asset-regulation-election-year/
• https://www3.weforum.org/docs/WEF_Digital_Assets_Regulation_2024.pdf 

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Introduction

Search engines have become indispensable in our daily lives, allowing us to find information instantly by entering keywords or phrases. Using the prompt "search Google or type a URL" reflects just how seamless this journey to knowledge has become. With millions of searches conducted every second, and Google handling over 6.3 million searches per minute as of 2023 (Statista), one critical question arises: do search engines prioritise results based on user preferences and past behaviours, or are they truly unbiased?

Understanding AI Bias in Search Algorithms

AI bias is also known as machine learning bias or algorithm bias. It refers to the occurrence of biased results due to human biases that deviate from the original training data or AI algorithm which leads to distortion of outputs and creation of potentially harmful outcomes. The sources of this bias are algorithmic bias, data bias and interpretation bias which emerge from user history, geographical data, and even broader societal biases in training data. 

Common biases include excluding certain groups of people from opportunities because of AI bias. In healthcare, underrepresenting data of women or minority groups can skew predictive AI algorithms. While AI helps streamline the automation of resume scanning during a search to help identify ideal candidates, the information requested and answers screened out can result in biased outcomes due to a biased dataset or any other bias in the input data.

Case in Point: Google’s "Helpful" Results and Its Impact 

Google optimises results by analysing user interactions to determine satisfaction with specific types of content. This data-driven approach forms ‘filter bubbles’ by repeatedly displaying content that aligns with a user’s preferences, regardless of factual accuracy. While this can create a more personalised experience, it risks confining users to a limited view, excluding diverse perspectives or alternative viewpoints.

The personal and societal impacts of such biases are significant. At an individual level, filter bubbles can influence decision-making, perceptions, and even mental health. On a societal level, these biases can reinforce stereotypes, polarise opinions, and shape collective narratives. There is also a growing concern that these biases may promote misinformation or limit users’ exposure to diverse perspectives, all stemming from the inherent bias in search algorithms.

Policy Challenges and Regulatory Measures

Regulating emerging technologies like AI, especially in search engine algorithms, presents significant challenges due to their intricate, proprietary nature. Traditional regulatory frameworks struggle to keep up with them as existing laws were not designed to address the nuances of algorithm-driven platforms. Regulatory bodies are pushing for transparency and accountability in AI-powered search algorithms to counter biases and ensure fairness globally. For example, the EU’s Artificial Intelligence Act aims to establish a regulatory framework that will categorise AI systems based on risk and enforces strict standards for transparency, accountability, and fairness, especially for high-risk AI applications, which may include search engines. India has proposed the Digital India Act in 2023 which will define and regulate High-risk AI. 

Efforts include ethical guidelines emphasising fairness, accountability, and transparency in information prioritisation. However, a complex regulatory landscape could hinder market entrants, highlighting the need for adaptable, balanced frameworks that protect user interests without stifling innovation.

CyberPeace Insights

In a world where search engines are gateways to knowledge, ensuring unbiased, accurate, and diverse information access is crucial. True objectivity remains elusive as AI-driven algorithms tend to personalise results based on user preferences and past behaviour, often creating a biased view of the web. Filter bubbles, which reinforce individual perspectives, can obscure factual accuracy and limit exposure to diverse viewpoints. Addressing this bias requires efforts from both users and companies. Users should diversify sources and verify information, while companies should enhance transparency and regularly audit algorithms for biases. Together, these actions can promote a more equitable, accurate, and unbiased search experience for all users. 

References 

• https://www.bbc.com/future/article/20241101-how-online-photos-and-videos-alter-the-way-you-think 
• https://www.bbc.com/future/article/20241031-how-google-tells-you-what-you-want-to-hear
• https://www.ibm.com/topics/ai-bias#:~:text=In%20healthcare%2C%20underrepresenting%20data%20of,can%20skew%20predictive%20AI%20algorithms

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Executive Summary:

In recent times an image showing the President of AIMIM, Asaduddin Owaisi holding a portrait of Hindu deity Lord Rama, has gone viral on different social media platforms. After conducting a reverse image search, CyberPeace Research Team then found that the picture was fake. The screenshot of the Facebook post made by Asaduddin Owaisi in 2018 reveals him holding Ambedkar’s picture. But the photo which has been morphed shows Asaduddin Owaisi holding a picture of Lord Rama with a distorted message gives totally different connotations in the political realm because in the 2024 Lok Sabha elections, Asaduddin Owaisi is a candidate from Hyderabad. This means there is a need to ensure that before sharing any information one must check it is original in order to eliminate fake news.

Claims:

AIMIM Party leader Asaduddin Owaisi standing with the painting of Hindu god Rama and the caption that reads his interest towards Hindu religion.

Fact Check:

In order to investigate the posts, we ran a reverse search of the image. We identified a photo that was shared on the official Facebook wall of the AIMIM President Asaduddin Owaisi on 7th April 2018.

Comparing the two photos we found that the painting Asaduddin Owaisi is holding is of B.R Ambedkar whereas the viral image is of Lord Rama, and the original photo was posted in the year 2018.

Hence, it was concluded that the viral image was digitally modified to spread false propaganda.

Conclusion:

The photograph of AIMIM President Asaduddin Owaisi holding up one painting of Lord Rama is fake as it has been morphed. The photo that Asaduddin Owaisi uploaded on a Facebook page on 7 Apr 2018 depicted him holding a picture of Bhimrao Ramji Ambedkar. This photograph was digitally altered and the false captions were written to give an altogether different message of Asaduddin Owaisi. It has even highlighted the necessity of fighting fake news that has spread widely through social media platforms especially during the political realm.

• Claim:  AIMIM President Asaduddin Owaisi was holding a painting of the Hindu god Lord Rama in his hand.
• Claimed on: X (Formerly known as Twitter)
• Fact Check: Fake & Misleading

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