What's New :

Belated but Essential

  • Published
    11th Mar, 2023

In a gazette notification, the Finance Ministry said the anti-money laundering legislation has been applied to crypto trading, safekeeping and related financial services.

  • After this, Indian crypto exchanges will have to report suspicious activity to the Financial Intelligence Unit India (FIU-IND).

Issues with crypto currencies

  • Criminal misuse: FATF has been continuously flagging the potential that virtual digital assets have for criminal misuse considering the speed and anonymity. 
  • Absence of a regulatory framework: Few countries have moved to regulate virtual assets, while a majority have not taken any action. It has created a global system with loopholes for criminals and terrorists to abuse.
  • Money laundering: ED was ‘investigating several cases related to cryptocurrency frauds wherein a few crypto exchanges had been found involved in money laundering’.

Steps taken in India

  • Application of PLMA: The Government placed all transactions involving virtual digital assets under the purview of the Prevention of Money Laundering Act (PMLA). 
  • Introduction of a tax regime: Government has introduced the tax regime for the virtual digital assets in previous year’s Budget. 
  • Draft legislation: Government has formulated the draft legislation seeks to prohibit mining, holding, selling, trade, issuance, disposal or use of cryptocurrency in the country.
You must be logged in to get greater insights.
GS Mains Classes GS Classes 2024 GS Classes 2024 UPSC Study Material

Verifying, please be patient.

Our Centers

DELHI (Karol Bagh)

GS SCORE, 1B, Second Floor, Pusa Road, Karol Bagh, New Delhi - 110005 (Beside Karol Bagh Metro Station Gate No. 8)

Get directions on Google Maps

BHUBANESWAR (Jaydev Vihar)

GS SCORE, Plot No.2298, Jaydev Vihar Square, Near HCG Day Care, BBSR - 751013

Get directions on Google Maps

LUCKNOW (Aliganj)

GS SCORE, 2nd Floor, B-33, Sangam Chauraha, Sector H, Aliganj, Lucknow, UP - 226024

Get directions on Google Maps

Enquire Now