The Indian Finance Ministry has declared that crypto transactions will be included under the Prevention of Money Laundering Act of 2002 (PMLA), which is seen as a positive step in recognizing the sector. An insider of the crypto world has mentioned that this move will support the industry’s attempt to prevent digital assets from being exploited by wrongdoers.
Okay got so many questions on this Govt of India finally notifying #crypto business under PMLA.
( Prevention of Money laundering Act 2002 )( and terror financing)
So I will demystify it in this thread
It is basically first step towards full fledged regulation completion and… https://t.co/N9Y2IToFKj pic.twitter.com/zqZKanc3sA
— KunalCryptowhale (@kunalcrypto1104) March 8, 2023
PMLA Applied to Crypto Transactions
The Ministry of Finance in India issued a gazette on Tuesday that outlines that certain crypto activities undertaken for or on behalf of another natural or legal person in a business setting will be subject to the Prevention of Money Laundering Act, 2002 (PMLA). This rule is designed to provide a professional and secure regulatory framework for those involved in crypto activities.
In accordance with the notice, the exchanging of virtual digital assets for fiat currencies, the trading of various virtual digital assets, the transfer of virtual digital assets, the storing or managing of virtual digital assets, and the involvement in financial services concerning the offering and sale of virtual digital assets are all subject to the provisions of the Prevention of Money Laundering Act.
Co-founder of India Blockchain Forum, Sharat Chandra, proclaimed to local media that this notification was an admirable stride in the direction of conformity within the crypto industry.
Indian Finance Minister on Crypto Regulation
At the conclusion of the G20 gathering for finance ministers and central bank governors, Indian Finance Minister Nirmala Sitharaman called for international cooperation in developing coherent policies on cryptocurrency. She urged the International Monetary Fund (IMF) and Financial Stability Board (FSB) to collaborate on a joint paper that would provide guidance to countries on regulating digital assets. India is at the forefront of the discussions on crypto regulation and continues to lead the efforts in this critical area.