New Delhi: Ministry of Finance notification bringing digital assets exchange including crypto-currencies under the purview of the Prevention of Money Laundering Act, 2002. The action is part of strengthening monitoring and control over digital asset transactions. Digital assets are defined under the Income Tax Act. The Finance Ministry’s move is expected to help make the country’s cryptocurrency market transparent.
Crypto exchanges in the country can now report suspicious transactions to the Financial Intelligence Unit of India. And the Enforcement Directorate can investigate unauthorized and illegal transactions using cryptocurrency. Also, the Ministry of Finance said that crypto users should follow the KYC and Prevention of Money Laundering Act, 2002 as prescribed by the government.
Officials estimate that black money transactions using cryptocurrency will end with this. The Indian legal system defines money laundering as the offense of directly engaging in any process or activity related to the proceeds of crime or characterizing it as illegitimate property and knowingly attempting to assist such a person, directly or indirectly.
