NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Mukesh Ambani
    WhatsApp
    Reliance Jio
    OPPO
    Vivo
    Sensex
    Bitcoin
    NewsBytes
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout


    India Business World Politics Sports Technology Entertainment Auto Lifestyle Inspirational Career Bengaluru Delhi Mumbai Visual Stories Find Cricket Statistics Phones Reviews Fitness Bands Reviews Speakers Reviews

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
     
    Home / News / Business News / Government imposes anti-money laundering provisions on cryptocurrency, virtual assets
    Business

    Government imposes anti-money laundering provisions on cryptocurrency, virtual assets

    Government imposes anti-money laundering provisions on cryptocurrency, virtual assets
    Written by Athik Saleh
    Mar 08, 2023, 05:40 pm 2 min read
    Government imposes anti-money laundering provisions on cryptocurrency, virtual assets
    Crypto sector India will now have to follow anti-money laundering provisions

    In the latest blow to the cryptocurrency sector in the country, the Indian government has imposed money laundering provisions on the industry. The move is aimed at tightening the oversight of digital assets. Entities dealing in crypto will now have to follow KYC and anti-money laundering regulations. Notably, India isn't the only country to bring the crypto sector under anti-money laundering provisions.

    Why does this story matter?

    • India has been discussing bringing legislation to regulate the crypto sector, but the country has yet to make a final decision.
    • If it is up to the Reserve Bank of India (RBI), crypto will be banned in the country. However, the government believes the industry must be regulated rather than banned.
    • The latest decision is in line with that.

    Crypto exchanges have to report suspicious activities

    The Ministry of Finance notified via a gazette paper that crypto or virtual digital asset businesses are now under the ambit of the Prevention of Money Laundering Act, 2002 (PMLA). The legislation will now apply to crypto trading, safekeeping, and financial services related to that. From now on, crypto exchanges will have to report suspicious activities to the Financial Intelligence Unit.

    The government is regulating 'virtual digital assets'

    "The Central Government hereby notifies that the following activities... participation in and provision of financial services related to an issuer's offer and sale of a virtual digital asset," the gazette paper reads. "For the purposes of this notification 'virtual digital asset' shall have the same meaning assigned to it in Clause (47A) of Section 2 of the Income Tax Act, 1961 (43 of 1961)."

    What are virtual digital assets?

    Per Section 2 of the Income Tax Act, virtual digital assets refer to any digital representation of value generated through cryptographic means or otherwise. They are used for financial transactions, investments, or store value. This includes cryptocurrencies, NFTs, and other specified digital assets.

    Banking and financial institutions are already covered under PMLA

    The decision by the government puts the crypto sector in the same category as banking companies, financial institutions, and intermediaries. Under PMLA, they are obligated to keep records of transactions and furnish such reports as and when necessary. Now, the crypto sector will also need to do the same. In the long run, this could benefit the industry.

    Share this timeline
    Facebook
    Whatsapp
    Twitter
    Linkedin
    Latest
    Reserve Bank Of India (RBI)
    Indian Government
    Cryptocurrency
    Ministry of Finance

    Latest

    Importance of outdoor play in early childhood Children
    Happy birthday, Rani Mukerji: Revisiting actor's unconventional, pathbreaking roles Rani Mukerji
    Happy birthday, Gary Oldman: Best performances by the fine actor Gary Oldman
    Should you buy Xiaomi 13 Pro or Samsung Galaxy S23 Xiaomi

    Reserve Bank Of India (RBI)

    Credit Suisse's crisis is more relevant to India: Know how India
    Bank Run: The problem that triggered Silicon Valley Bank collapse United States of America
    Here's how you can exchange torn or damaged currency notes India
    NCLT gives nod to Suraksha Group to buy Jaypee Infratech  National Company Law Tribunal

    Indian Government

    22 smart cities to be ready by April: Check list Bharatiya Janata Party (BJP)
    Pegasus used for spying on me: Rahul Gandhi at Cambridge Rahul Gandhi
    Canada: Ram temple defaced with anti-India graffiti, India demands action Canada
    Centre now wants Apple to manufacture MacBooks, iPads in India Apple

    Cryptocurrency

    Cryptocurrency prices: Here are rates of Bitcoin, Dogecoin, Ethereum, Tether Bitcoin
    Cryptocurrency prices: Here are rates of Bitcoin, Ethereum, Dogecoin, Tether Bitcoin
    Cryptocurrency prices: Bitcoin is nearly 30% up from last week Bitcoin
    Cryptocurrency prices today: Rates of Bitcoin, Ethereum, USD Coin, Cardano Bitcoin

    Ministry of Finance

    February GST collections up 12%, third-highest of all time GST
    Parliament Budget Session begins; President Murmu calls government fearless, decisive Parliament
    Centre mulling over reducing income tax rates under new regime Union Budget
    Centre cuts windfall tax on oil companies amid falling prices Indian Government

    Love Business News?

    Subscribe to stay updated.

    Business Thumbnail
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2023