Govt brings crypto trade under anti-money laundering law

New Delhi, Mar 8 (KNN) The Indian government has decided to include crypto trading under the anti-money laundering legislation, a gazette notification dated March 7 said.

The exchange between virtual digital assets and fiat currencies, the exchange between one or more forms of virtual digital assets and the transfer of digital assets will be covered under anti-money laundering laws, it added.

The notification further pointed out that the safekeeping or administration of virtual digital assets and the participation in financial services related to the offer and sale of virtual digital assets will also be covered under the law.

The Indian government as of now has not finalised any regulations regarding trade using cryptocurrencies.

Earlier, the Reserve Bank of India had cautioned the government against the cryptocurrency usage. It had asked centre to ban cryptocurrencies as they are akin to a Ponzi scheme.

Extending India's money laundering rules to cryptocurrencies will give greater authority to the government to monitor the transfer of these assets beyond the country's borders.

The Narendra Modi-led administration, as part of its leadership of the G-20 forum, has been pushing for a wider global agreement on dealing with the risks brought on by cryptocurrencies.  (KNN Bureau)