Anti money laundering provisions implemented on cryptocurrencies
New Delhi: The government has implemented anti-money laundering provisions on cryptocurrencies or virtual 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 India (FIU-India).
The move is in line with the global trend of requiring digital assets to comply with anti-money laundering laws at par with other regulated entities such as banks or stockbrokers.
Digital currency or assets have become popular all over the world during the last few years. 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.