The operators must store the transactions data for ten years and pass it to regulators on demand. 1873 Total views 44 Total shares Listen to article 0:00 News Own this piece of history
Collect this article as an NFT While theres nothing new in imposing Anti-Money Laundering (AML) standards on crypto, it is only now that the Indian government has decided to notify all interested parties of the obligation to comply with the national AML law.
On March 7, The Gazette of India published a notification from the Ministry of Finance, subjecting a range of crypto transactions to the Prevention of Money-Laundering Act (PLMA) 2002 namely the exchange, transfers, safekeeping and administration of virtual assets. Financial services related to an issuers offer and sale of virtual assets also fall under the PMLA.
The notification doesnt provide many details, but the PMLAobliges financial institutions to maintain a record of all transactions for the last ten years, provide these records to officials if demanded, and verify the identity of all the clients.
All crypto businesses in the country would come under ambit of PMLA
This is a good step towards regulating the crypto industry in India
This also ensures all crypto businesses must perform necessary KYC, transaction monitoring etc as part of their process.
Good progress ?? pic.twitter.com/lVhs5LWG4I— Nischal (Shardeum) ?? (@NischalShetty) March 8, 2023
Published as regulators worldwide are tightening AML standards for crypto, the notification will complicate the life of crypto companies in India. And it already has not been too comfortable in recent years. From March 2022, according to amended tax rules, digital assets holdings and transfers are subject to a 30% tax.
Related: India explores offline functionality of CBDCs RBI executive director
??Trading volume on major cryptocurrency exchanges across India dropped by 70% within 10 days of the new tax policy, and almost 90% over the next three months. The rigid tax policy drove crypto traders to offshore exchanges and forced budding crypto projects to move outside India.
In February 2023, Indian authorities again demonstrated their tough stance on cryptocurrencies with a preemptive ban on crypto advertising and sponsorships in the local womens cricket league. This followed a previous ban for the mens cricket Premier League, introduced back in 2022.
In 2023, while celebrating Indias first presidency of the G20, the countrys Finance Minister, Nirmala Sitharaman, urged international efforts to regulate crypto. She called for a coordinated effort for building and understanding the macro-financial implications, which could be used to reform crypto regulation globally. #Cryptocurrencies #India #AML #Regulation
Add reaction
Add reaction Related News What is Solana (SOL) Pay, and how does it work? FATF agrees on roadmap for implementation of crypto standards Coordinated global crypto policies: G20 key financial stability priority FSB, IMF and BIS papers to set global crypto framework, says G20 Hong Kongs losses to crypto scams doubled to $217M last year: Report
