Cryptocurrency: The government has implemented anti-money laundering provisions on cryptocurrencies or virtual digital assets to tighten monitoring of digital assets. The Finance Ministry said in a gazette notification that the Prevention of Money Laundering Act has been implemented for crypto transactions, possession and related financial services. In such a situation, Indian crypto exchanges will have to report suspicious activities to the Financial Intelligence Unit India (FIU-India).
The move is similar to other regulated entities like banks or stock brokers under Prevention of Money for Digital Assets. This is in line with the global practice of mandating compliance with the laws of the Money Laundering Act.
Prevention of Money Laundering Act, 2002 applicable to digital assets such as crypto
Previous Over the years digital currency or assets have become popular all over the world. However, till last year, India did not have any clear policy to regulate or tax such assets. The Prevention of Money Laundering Act, 2002 will now apply to such assets, the notification said.
Government has advocated bringing rules
Finance Minister Nirmala Sitharaman recently advocated a global framework regarding cryptocurrency. Along with this, he also talked about removing the global weaknesses of loans and strengthening multilateral development banks. At the same time, the country’s central bank Reserve Bank of India has often been advocating new rules for cryptocurrency and saying that it is similar to Ponzi scheme.
India in the G20 presidency program The IMF and the Financial Stability Board (FSB) have been asked to jointly prepare a technical paper on crypto assets. This can be used to formulate a coordinated and comprehensive policy for regulating crypto assets.
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