Crypto Transactions Come Under Money Laundering Act
The Indian government has brought crypto transactions under money laundering law by imposing PMLA provisions against cryptocurrency & crypto assets. The Finance Ministry has informed transactions involving the exchange, transfer, and safekeeping of cryptocurrency assets under the Prevention of Money-laundering Act, bringing virtual digital assets under money laundering provisions. The PMLA’s coverage of exchange between virtual digital assets and fiat currencies is expected to broaden the taxation and regulatory net. The Enforcement Directorate and Income Tax Department are already looking into several such cases against businesses that conduct cryptocurrency exchanges and transactions, so it is anticipated that this measure will help them in their efforts to take legal action against crypto companies. In August of last year, the ED searched the offices of a director of the company Zanmai Labs and froze bank balances totaling Rs. 64.67 crore that belonged to a business o...