Money Laundering Laws: Crypto Trading Under PMLA – What Crypto Owners Need To Know
The latest step in bringing virtual digital assets under money laundering laws is in line with thought processes within governments that have been considering rolling out their own digital currencies. After this, Indian cryptocurrency exchanges are required to report suspicious activity to the Financial Intelligence Unit India (FIU-IND).
Transactions subject to money laundering laws
– Exchange between virtual digital assets and fiat currency
– Exchange between one or more forms of virtual digital assets
– Transfer of virtual digital assets
– storage or management of Virtual Digital Assets or means enabling control of Virtual Digital Assets;
The Ministry of Finance also warned investors against “participating in and providing financial services related to the offer and sale of virtual digital assets issuers” in a gazette notice.
What is a Virtual Digital Asset?
The Government further states that “For the purposes of this notice, “virtual digital assets” shall have the same meaning as assigned in section 2, article (47A) of the Income Tax Act, 1961 (No. 43 of 1961). ‘ added.
Pursuant to Section 2(47A) of the Income Tax Act 1961, unless the context otherwise requires, the term “virtual digital asset (VDA)” means:
(a) any information, code, number or token (not Indian currency or foreign currency) generated by cryptographic means or otherwise, having an inherent value or being restricted to investment schemes, financial transactions or Acting as a store of value or unit of account, including for use in investments. may be transferred, stored or traded electronically;
(b) non-fungible tokens or other tokens of a similar nature;
c) Other digital assets that the Central Government may, by notification in the Official Gazette, designate:
However, the Central Government may exclude digital assets from the definition of virtual digital assets by giving notice in the Official Gazette and subject to the conditions specified therein.
How was the decision received?