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Crypto trading & NFTs to fall under money laundering provisions – Finance Ministry

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Central government slaps money laundering provisions on crypto trading and NFTs transactions.

A Gazette notification ministry said the money laundering act applied to crypto trading and related virtual assets as a ‘ reporting entity’ under Section 2(wa) of the PMLA.

Following activities related to crypto to fall under PMLA.

  • The safekeeping of virtual digital assets and any financial services related to offering sales of virtual digital assets.
  • The exchange between virtual assets and fiat currencies.
  • The deal between one or more forms of virtual digital assets. The transfer of virtual assets.

For the purpose of this notification, virtual digital assets shall have the same meaning assigned to them in Clause (47A) of section 2 of the Income-Tax Act, 1961 (43 of 1961), in the gazette notification issued by the central government.

Income tax act – virtual digital asset refers to any information, code, number, or token generated through crypto means that can be called by whatever name.

Enforcement Directorate, also investigating money laundering and forex violation cases. KYC is mandated for dealing in crypto.

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