According to the government notification, money laundering rules will apply to the trade of virtual digital assets and fiat currencies, the exchange of one or more kinds of virtual digital assets, and the transfer of digital assets.
The federal government said on March 7 that cryptocurrency will be subject to India’s money laundering regulations.
According to the notification, money laundering rules will apply to the trade of virtual digital assets and fiat currencies, the exchange of one or more kinds of virtual digital assets, and the transfer of digital assets.
The notification further stated that the safeguarding or administration of virtual digital assets, as well as involvement in financial services relating to the offer and sale of virtual digital assets, will be covered.
Even though the country’s central bank has often warned against the usage of cryptocurrency, India has failed to finalize legislation and regulations.
The Central Bank of India has stated that cryptocurrencies should be prohibited since they resemble a Ponzi scheme.
Expanding India’s money laundering legislation to cryptocurrencies will provide authorities more power to monitor the transfer of these assets outside of the country’s boundaries.
As part of its G-20 leadership, the Narendra Modi government has pushed for a broader global consensus on dealing with the hazards posed by cryptocurrencies.
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