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All Indian crypto transactions have been brought under the purview of the Prevention of Money Laundering Act (PMLA) of 2002 by the government. [embed]https://twitter.com/NischalShetty/status/1633375683182247937?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1633375683182247937%7Ctwgr%5Eb2d74aa12bd8b420f3c60cb141f6c4544df137f5%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Findia-subjects-crypto-transactions-to-anti-money-laundering-law[/embed]
Indian Crypto Transactions to Be Governed By The PMLA
As per a notification issued by the Finance Ministry on Wednesday, the exchange and transfer of virtual digital assets will now be governed by the PMLA. The act requires financial institutions to maintain records of all transactions and provide them to the authorities when requested. The notification clarifies that the PMLA is also applicable to financial services related to the sale and issuance of virtual assets.
Increased Scrutiny on Digital Assets
The government defines a virtual digital asset as any information, code, number, or token that is created through cryptographic or other means, providing a digital representation of value exchanged with or without consideration. The government has cautioned investors against engaging in transactions involving virtual digital assets and has been attempting to regulate the cryptocurrency market in India. The Enforcement Directorate, responsible for enforcing economic laws and fighting economic crime, is already investigating several cryptocurrency firms for money laundering and forex violations.