The federal government said in a March 7 notification that India’s money laundering laws will apply to cryptocurrency trade.
The announcement specified that the exchange of one or more types of virtual digital assets and fiat currencies, as well as the transfer of virtual digital assets, would be subject to money laundering regulations.
The notification further stated that involvement in financial services relating to the offer and sale of virtual digital assets as well as the administration or custody of those assets will be included.
Even though the central bank of the nation has often advised against the usage of cryptocurrencies, India has not yet finalized any laws or regulations in this area.
The Reserve Bank of India claims that because cryptocurrencies are comparable to Ponzi schemes, they ought to be banned.
By including cryptocurrencies in India’s money laundering regulations, officials will have more power to keep an eye on the movement of these assets outside of the nation.
As part of its G-20 leadership, the Narendra Modi administration has pushed for a more comprehensive international agreement to address the hazards posed by cryptocurrencies.