Every transaction related to crypto assets will now be subjected to India’s money laundering laws, according to a notification put out by the Indian government on March 7, 2023. The notification specified that the following activities will be covered by The Prevention of Money-Laundering Act, 2002 (PMLA): Exchange between virtual digital assets and fiat currencies; Transfer of virtual digital assets; Exchange between one or more forms of virtual digital assets; Safekeeping or administration of virtual digital assets or instruments enabling control over virtual digital assets; Participation in and provision of financial services related to an issuer’s offer (ICO) and sale of a virtual digital asset (VDA). https://twitter.com/ashish343/status/1633401318420418560 Why it matters: It is a notable move as it offers clarity to crypto entities who will now have to maintain records and conduct due diligence as part of their compliance. It offers authorities a framework which might enable them to procure data related to crypto transactions in a systematic fashion. Moreover, it also brings India’s laws in consonance with money laundering laws around the globe. https://twitter.com/AnujChaudhary25/status/1633397237182259200 What are the implications: It essentially means that all crypto exchanges and businesses will need to monitor and screen transactions, report suspicious activity, and prepare dossiers on suspicious activity. The exchanges will have to share these dossiers with the Financial Intelligence Unit India (FIU-IND), as per The Hindu. A researcher, Shruti Singhi, said that the move presents a rather simplistic solution to a complex problem in a post on LinkedIn. She added the application of these laws would…
Indian government to subject crypto transactions to money laundering law
The move offers clarity to crypto entities who will now have to maintain records & conduct due diligence as part of their compliance.
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