Govt imposes money laundering provisions on crypto sector

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 of India (FIU-India).

The move is in line with the global trend of requiring digital assets to comply with the laws of the Prevention of Money Laundering Act with other regulated entities such as banks or stockbrokers.

The Prevention of Money Laundering Act, 2002 applies to digital assets like crypto

During the last few 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 notification states that the Prevention of Money Laundering Act, 2002 will now apply to such assets.

The government has advocated bringing rules

Finance Minister Nirmala Sitharaman recently advocated a global framework regarding cryptocurrencies. 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 cryptocurrencies and saying that it is similar to Ponzi scheme.

India has asked the IMF and the Financial Stability Board (FSB) to jointly prepare a technical paper on crypto assets in the G20 presidency. This can be used to formulate a coordinated and comprehensive policy for regulating crypto assets.

Must Read: Indian Military Prohibits Use of Chinese Phones and Apps Over Security Concerns

Keep watching our YouTube Channel ‘ News NCR’. Also, please subscribe and follow us on FACEBOOK, INSTAGRAMand TWITTER.

Source link

Leave a Comment