Explained | Why is crypto trade within PMLA ambit?
The HinduThe story so far: On March 7, to further tighten the loosely regulated crypto market, the Finance Ministry said that all virtual digital assets will come within the ambit of the Prevention of Money Laundering Act, 2002. Editorial | Belated, but essential: On bringing all trade in virtual digital assets under the PMLA In July 2022, Union Minister of State for Finance Pankaj Chaudhary told the Lok Sabha, in response to a query on cases registered by the ED, that “till March 31, 2022, the ED recorded around 5,422 cases, attached proceeds to the tune of ₹1,04,702 crore, filed Prosecution Complaint in 992 cases resulting in confiscation of ₹869.31 crore and convicted 23 accused persons under PMLA.” What does this move mean for crypto? Tracking money trail in cryptocurrency transactions may require new tools and approaches as such transfers differ fundamentally from traditional banking channels. The Egmont Group that facilitates cooperation between FIUs to prevent money laundering recommends the analysis of crypto wallets, its associated addresses and blockchain records, and hardware identifiers like IMEI, IMSI or SEID numbers, as well as MAC addresses.