India Strengthens Crypto Oversight, Implements Money Laundering Provisions: Report

India Strengthens Crypto Oversight, Implements Money Laundering Provisions: Report

The Indian government has taken another step towards strengthening its oversight of the cryptocurrency industry by implementing money laundering provisions. As per a notice issued by the Finance Ministry on Tuesday, the new anti-money laundering legislation will be applicable to cryptocurrency trading, safekeeping, and other financial services, Bloomberg reported.

This move is in line with the global trend of digital asset platforms being required to follow anti-money laundering standards that are similar to those followed by regulated entities like banks and stockbrokers. Jaideep Reddy, a counsel at the Trilegal law firm, has acknowledged this alignment and stated that it is a part of the government’s larger agenda of regulating the cryptocurrency sector in India.

ALSO READ: Financial Independence Key Motivation For Female Crypto Investors, Average Value Held By Women More Than Men: Survey

In 2020, India had already imposed more stringent tax rules on the crypto sector, which included the application of a trading levy. These moves, coupled with the global decline in digital assets, had led to a significant drop in domestic trading volumes.

However, this latest anti-money laundering measure has raised concerns among industry experts, who have expressed apprehension that implementing the necessary compliance measures could require a significant amount of time and resources. Reddy has noted that this is a significant challenge that the cryptocurrency industry in India will have to tackle in the coming months.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.

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