Exchange and transfer of virtual digital assets would also fall under PMLA laws.
In a notification, the government said that participation in transactions involving virtual digital assets would be under the Prevention of Money Laundering Act (PMLA).
The move is the latest step taken by the government to tighten oversight of digital assets.
According to the Income tax act, 'virtual digital asset' refers to any information, code, number, or token (not being Indian currency or foreign currency), generated through cryptographic means or otherwise and can be called by whatever name.
The Enforcement Directorate, which has the mandate to investigate money laundering and forex violation cases, has already been probing crypto companies including exchanges CoinSwitch Kuber and WazirX. The latest move by India aligns with a global trend of requiring digital-asset platforms “to follow anti-money laundering standards similar to those followed by other regulated entities like banks or stock brokers,” said Jaideep Reddy, counsel at law firm Trilegal.
Source: NDTV
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