India To Implement Anti-Money Laundering Measures In The Cryptocurrency Industry

According to a Reuters story, the Indian government has decided to implement anti-money laundering regulations in the cryptocurrency industry.

Tuesday, the Ministry of Finance notified that anti-money laundering laws would be applied to crypto trading, storage, and other financial services.

The government’s announcement was devoid of specifics. Yet, the Prevention of Money Laundering Act demanded that financial institutions keep records of all transactions from the previous decade.

Whenever requested, the financial institution must supply the regulators with these documents. These documents must be validated, and the financial institutions must identify all customers.

This is the most recent measure India has taken to ensure stringent management of digital assets. India’s worry surrounding crypto led to harsh tax regulations on the crypto business, including a high tax on crypto transactions.

India’s decision to impose harsh regulations on the business is also partially responsible for the country’s steep decline in trade volumes. According to Reddy, the anti-money laundering measure may be challenging since the necessary compliance measure would likely need additional time and resources.

This move to implement anti-money laundering (AML) regulations came after India experienced crypto-related incidents. End of last year, hackers shut down the All India Institute of Medical Sciences (AIIMS) system and demanded over $24 million in cryptocurrency as ransom.

In November, the Indian Directorate of Enforcement (ED) confiscated Bitcoin worth roughly $2.5 million from an unlawful gambling website known as E-nuggets. ED accessed a Binance user’s wallet, which was connected to a mobile gaming game, and froze 150.22 Bitcoin.

ED has already frozen the account balances of many Chinese-operated firms and investigated the app-based token HPZ. The regulator froze Rs 9.82 crores, or around $1,218,500.

In February, the Reserve Bank of India (RBI), India’s central bank, voiced worries about cryptocurrencies and advocated for a ban. The Indian government desired to ban cryptocurrency advertisements and sponsorships in women’s cricket competitions.

Also Read: SEC Loses To Ripple With “Fatal” Expert Evidence