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The Indian government has imposed money laundering provisions on the crypto sector in its latest move to tighten oversight of digital assets.
Bloomberg reported that India’s Finance Ministry said on Tuesday in a notice that anti-money laundering legislation has been applied to cryptocurrency trading, safekeeping, and related financial services. Reuters added that the notification, dated March 7, said the exchange between virtual digital assets and fiat currencies, the exchange between virtual digital assets and the transfer of digital assets will fall under the scope of the newly introduced money laundering laws.
Further, the notice added that the laws would also oversee the safekeeping or administration of virtual digital assets and the participation in financial services related to the sale and offer of virtual assets.
India’s Views of Crypto
Until now, India has yet to finalize legislation and regulations surrounding the industry, even as the country has been very vocal about its disapproval of the sector.
Financial industry heavyweights, such as the Indian central bank governor Shaktikanta Das, recently made bold statements regarding the crypto industry. Speaking at the BFSI Insight Summit 2022, the Royal Bank of India Governor Shaktikanta Das made a speech in which he warned that if crypto is not banned and is allowed to grow, it might cause the next financial crisis.
Not long after his controversial speech, the Governor again made his opinions of crypto known. While addressing the Business Today Banking and Economy Summit, he reiterated the significance of banning the industry. Das described crypto trading as “nothing but gambling”, adding that the definition of crypto remains “very unclear.”
Das brazenly said crypto’s perceived “value is nothing but make-believe.” He further opined that there is no valid reason to acknowledge crypto as an “asset” or a “financial product.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.