India Requires Crypto Transactions to Comply with Anti-Money Laundering Laws

While it is not uncommon to implement anti-money laundering (AML) standards for cryptocurrencies, the Indian government has now decided to inform all stakeholders of its obligation to comply with the country’s AML laws.

Indian Gazette, March 7 Announce India’s Ministry of Finance has issued a circular requiring broad cryptocurrency transactions to comply with the Prevention of Money Laundering Act (PLMA) 2002 – including virtual transactions, transfers, custody and asset management. The PMLA also covers financial services related to the issuance and sale of virtual assets by issuers.

The announcement did not give many details, but PMLA necessary Financial institutions must keep records of all transactions for the past 10 years, provide them to officials upon request and verify the identity of all customers.

Electronic money

source: Nishar

The announcement will complicate operations for Indian companies as global regulators tighten anti-money laundering standards around the world. In recent years, the country’s regulatory environment for emerging asset classes has also been less relaxed. From March 2022, according to the revised tax law, the holding and transfer of digital assets will be subject to a 30% tax rate.

Trading volumes on major Indian exchanges fell by 70% in the first 10 days after the new tax was implemented, and nearly 90% in the following three months. Strict tax policy has driven traders to forex trading and forced many nascent projects to flee India.

In February 2023, Indian authorities took a tough stance on cryptocurrencies again, prioritizing the ban on cryptocurrency advertising and sponsorship during the local women’s volleyball tournament. This follows a ban on men’s league cricket introduced in 2022.

In 2023, India’s finance minister, Nirmala Sitharaman, called for international efforts to regulate cryptocurrencies as he celebrated India’s first-ever G20 presidency. She called for coordination “to establish and understand the macroeconomic implications,” which could be used to reform cryptocurrency regulation globally.

  • Coinbase Fined $50M for ‘Loose and Inadequate’ KYC/AML
  • India takes a step forward with CBDC e-rupi
  • Ripple (XRP) Looks Strong Despite Crypto Market Chaos


As reported by Cointelegraph

Stay in the Loop

Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

Latest stories

- Advertisement - spot_img