The finance ministry today announced that cryptocurrency transactions would now come under the ambit of money laundering provisions. 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.
In the gazette, the ministry warned investors against “participation in and provision of financial services related to an issuer’s offer and sale of a virtual digital asset.”
Exchange and transfer of virtual digital assets would also fall under PMLA laws, the notification said.
CoinSwitch co-founder Ashish Singhal tweeted the notification to bring VDA transactions under PMLA is a positive step in recognizing the sector.
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.
If you’re curious to delve deeper into the topic, read more about it here.
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