Explained | Why is crypto trade within PMLA ambit?
2 years ago

Explained | Why is crypto trade within PMLA ambit?

The Hindu  

The 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.

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History of this topic

PMLA | Money Laundering Offence Continues So Long As Proceeds Of Crime Are Concealed, Used Or Projected As Untainted : Supreme Court
2 weeks, 2 days ago

PMLA | Money Laundering Offence Continues So Long As Proceeds Of Crime Are Concealed, Used Or Projected As Untainted : Supreme Court

Live Law  

Observing that the offence of money laundering is a continuing offence and not a one-time occurrence, the Supreme Court today refused to discharge Pradeep Sharma, a former Gujarat IAS officer in a case under the Prevention of Money Laundering Act. The argument that no offence of money laundering could be made out because the alleged predicate offence occurred before the …

Intel agency pins 'suspicion' of crypto being used for terror financing, drugs trafficking in India
3 weeks ago

Intel agency pins 'suspicion' of crypto being used for terror financing, drugs trafficking in India

Hindustan Times  

New Delhi, A trends study conducted by the federal financial intelligence unit of India has expressed "suspicion" that cryptocurrency is being used across the country's landscape in serious criminal acts like terrorist financing, fuelling secessionist activities, cybercrime, narcotics trafficking apart from illegal betting and gambling. Intel agency pins 'suspicion' of crypto being used for terror financing, drugs trafficking in India …

Will Bitcoin's revival boost India's appetite for cryptos despite high taxes?
4 months, 2 weeks ago

Will Bitcoin's revival boost India's appetite for cryptos despite high taxes?

India Today  

Bitcoin has taken the financial world by storm once again, this time surging to a record-breaking $90,000 following Donald Trump's unexpected victory in the US presidential election. TRUMP'S IMPACT ON THE CRYPTO SURGE The crypto market has been riding a wave of optimism following Donald Trump's election as US president, with hopes that his administration will adopt a crypto-friendly stance. …

G20 summit 2023: Crypto market hopeful for constructive dialogue on global regulation
1 year, 6 months ago

G20 summit 2023: Crypto market hopeful for constructive dialogue on global regulation

India TV News  

As world leaders are gathering in India to attend G20 summit 2023, the crypto market is hopeful for a dialogue on the revival of the industry with a common regulation in place. Under the leadership of India's presidency, the G20 countries are reportedly poised to introduce what could be recognised as the first-of-their-kind regulations governing cryptocurrencies and crypto assets worldwide. …

Virtual digital assets, India’s stand and the way ahead
1 year, 11 months ago

Virtual digital assets, India’s stand and the way ahead

The Hindu  

Rulemaking is an arduous task. A prominent, and far-reaching, update has been India’s recent notification extending the anti-money laundering provisions to virtual digital assets businesses and service providers. On March 7, the Union Finance Ministry, in a gazette notification, extended these activities under the Prevention of Money Laundering Act Act of 2002: exchange between virtual digital assets and fiat currencies; …

Explained | What is the EU’s new crypto-legislation?
1 year, 11 months ago

Explained | What is the EU’s new crypto-legislation?

The Hindu  

The story so far: The European Parliament, the legislative body of the 27-country block European Union, has approved the world’s first set of comprehensive rules to bring largely unregulated cryptocurrency markets under the ambit of regulation by government authorities. As for the assets that will be out of MiCA’s scope, it will not regulate digital assets that would qualify as …

Crypto issue requires immediate attention, says FM Sitharaman
1 year, 11 months ago

Crypto issue requires immediate attention, says FM Sitharaman

The Hindu  

Issues related to crypto assets require immediate attention and the response of the G20 has to ensure that they do not lose any potential benefits while protecting economies from harm, Union Finance Minister Nirmala Sitharaman has said. Ms. Sitharaman was part of a brainstorming session on "Macrofinancial Implications of Crypto Assets" with G20 finance ministers and central bank governors at …

Understanding the current state of crypto assets in India
2 years ago

Understanding the current state of crypto assets in India

Live Mint  

It is a sweeping wave for some and a conundrum for others but crypto is the new buzzword in the world of investment finance. On the whole, the government seems to be accepting crypto and the underlying blockchain technology rather than casting them away as ‘risky’ or even ‘banning’ them. Banking is still not a breeze given RBI’s concerns The …

Navigating the complexities of crypto taxation in India
2 years ago

Navigating the complexities of crypto taxation in India

Live Mint  

There is an adage which encapsulates the process of taxation, and it goes thus: the only two things certain in life are death and taxes. Navigating crypto from a tax angle We believe that Indian crypto investors can become tax compliant and plan their investments better by following certain principles. Building a crypto portfolio: India’s crypto tax regime does not …

Cryptos Under PMLA: A Move To Go A Long Way Towards Empowering Legitimate Businesses
2 years ago

Cryptos Under PMLA: A Move To Go A Long Way Towards Empowering Legitimate Businesses

News 18  

Earlier this month, the finance ministry notified that certain activities relating to virtual digital assets, including cryptocurrencies, will be brought under the ambit of the Prevention of Money Laundering Act, 2002. Now, service providers in this space, specifically VDA exchanges and wallet operators, need to conduct due diligence activities, including reporting suspicious transactions/ activities related to the sale or purchase …

Belated, but essential: The Hindu Editorial on bringing all trade in virtual digital assets under the PMLA
2 years ago

Belated, but essential: The Hindu Editorial on bringing all trade in virtual digital assets under the PMLA

The Hindu  

The Finance Ministry’s March 7 notification placing all transactions involving virtual digital assets under the purview of the Prevention of Money Laundering Act is a much-needed, even if belated, step. The government has been struggling in recent years to formulate an appropriate regulatory response to deal with the pandemic-era upsurge in The intergovernmental Financial Action Task Force — the global …

Govt ropes in cryptocurrency trade in PMLA. How does it help market, investors
2 years ago

Govt ropes in cryptocurrency trade in PMLA. How does it help market, investors

Live Mint  

Finance Ministry has tweaked the anti-money laundering law by bringing cryptocurrencies and other virtual digital assets trade under the ambit. Also, the safekeeping or administration of virtual digital assets and the participation in financial services related to the offer and sale of virtual digital assets --- will be covered under the Act. Punit Agarwal, Founder of KoinX said, "The Government …

A critical move on crypto trade
2 years ago

A critical move on crypto trade

Hindustan Times  

India this week tweaked rules against money laundering to cover trade in cryptocurrencies, such as Bitcoin and Ethereum. The department of revenue issued a notification outlining new definitions to cover five specific scenarios: When cryptocurrency and fiat money is exchanged; when one form of crypto is exchanged with another; if such coins are transferred; the storing of virtual digital assets; …

Centre Applies Norms Of "Reporting Entities" Under Prevention Of Money Laundering Act To Cryptocurrency Exchanges
2 years ago

Centre Applies Norms Of "Reporting Entities" Under Prevention Of Money Laundering Act To Cryptocurrency Exchanges

Live Law  

The Ministry of Finance has notified that cryptocurrency exchanges will be “persons carrying on designated businesses or professions” within the meaning of Section 2 of the Prevention of Money Laundering Act. This means that crypto exchanges will come within the definition of "reporting entity" within the meaning of Section 2 of the PMLA. As a consequence, crypto exchanges should follow …

Centre Brings Crypto Transactions Under Money Laundering Laws
2 years ago

Centre Brings Crypto Transactions Under Money Laundering Laws

News 18  

The Central government, in a new regulatory move, has bought a range of virtual digital asset transactions, including cryptocurrencies, under the ambit of the Prevention of Money Laundering Act 2002. Virtual digital assets are defined as any code or number or token generated through cryptographic means with the promise or representation of having inherent value. “Exchange between virtual digital assets …

Money laundering law to apply to crypto trade: Finance Ministry
2 years ago

Money laundering law to apply to crypto trade: Finance Ministry

The Hindu  

The government has imposed money laundering provisions on cryptocurrencies or virtual assets as it looks to tighten oversight of digital assets. The notification said, “Exchange between virtual digital assets and fiat currencies, exchange between one or more forms of virtual digital assets, transfer of virtual digital assets, safekeeping or administration of virtual digital assets or instruments enabling control over virtual …

Money laundering laws will now cover cryptocurrency trade
2 years ago

Money laundering laws will now cover cryptocurrency trade

The Hindu  

The government has imposed money laundering provisions on cryptocurrencies or virtual assets as it looks to tighten oversight of digital assets. The notification said, "Exchange between virtual digital assets and fiat currencies, exchange between one or more forms of virtual digital assets, transfer of virtual digital assets, safekeeping or administration of virtual digital assets or instruments enabling control over virtual …

Explained | What is the crypto awareness campaign?
2 years, 3 months ago

Explained | What is the crypto awareness campaign?

The Hindu  

The story so far: The Investor Education and Protection Fund will launch an outreach programme soon to create awareness of cryptocurrencies and online gaming. People may presume incorrectly that it is illegal,” he states, adding, “One may be indulging in unlawful transactions like money laundering using crypto assets. As for the allegations, Mr. Menon told The Hindu, “The immutable, public …

WazirX-ED Money Laundering Probe Reveals Darker Side Of Crypto In India: Govt Sources
2 years, 7 months ago

WazirX-ED Money Laundering Probe Reveals Darker Side Of Crypto In India: Govt Sources

ABP News  

New Delhi: The ED probe into alleged money laundering by crypto exchange WazirX and the subsequent squabbling among its promoters has revealed the 'darker side' of cryptocurrencies, a top government source said on Thursday. In the episode of WazirX, people got to know many darker sides, caution is necessary in crypto transaction," the source said. The agency has frozen Rs …

Cryptocurrencies clear danger, says RBI Governor
2 years, 9 months ago

Cryptocurrencies clear danger, says RBI Governor

The Hindu  

The government is in the process of finalising a consultation paper on cryptocurrencies after gathering inputs from various stakeholders and institutions. In the foreword to the 25th issue of the Financial Stability Report released on Thursday, Das also said that as the financial system gets increasingly digitalised, cyber risks are growing and need special attention. In the foreword of the …

Money Laundering And Terror Financing Biggest Crypto Crime Concerns: Nirmala Sitharaman
2 years, 11 months ago

Money Laundering And Terror Financing Biggest Crypto Crime Concerns: Nirmala Sitharaman

News 18  

Union minister of finance Nirmala Sitharaman recently said that the biggest risk of cryptocurrency in the midst of the pioneering fintech revolution is money laundering and its use to finance terrorism. Crypto And Crimes Money laundering is one of the most common crimes in the crypto sector, with cases increasing by over 30 per cent between 2020 and 2021, according …

Money laundering, terror financing biggest concerns around cryptocurrency, says Nirmala Sitharaman
2 years, 11 months ago

Money laundering, terror financing biggest concerns around cryptocurrency, says Nirmala Sitharaman

India Today  

Casting further doubts on the already-uncertain cryptocurrency market in India, Union Finance Minister Nirmala Sitharaman on Monday, April 18, said the biggest risk around cryptocurrency is its possibility to be used for money laundering and terror financing. Sitharaman said: “The biggest risk for all countries across the board will be the aspect of money laundering and that of such currency …

Biggest risk of cryptocurrency could be money laundering, its use for financing terror: Sitharaman in US
2 years, 11 months ago

Biggest risk of cryptocurrency could be money laundering, its use for financing terror: Sitharaman in US

India TV News  

Biggest risk of cryptocurrency could be money laundering, its use for financing terror: Sitharaman in US Sitharaman highlighted India's performance in the digital world and the government's efforts to build the digital infrastructure framework over the last decade. Highlights Sitharaman was speaking at a seminar during the ongoing spring meet of IMF Union minister highlighted India's performance in the digital …

Alerting accused defeats PMLA’s purpose: Government
3 years, 1 month ago

Alerting accused defeats PMLA’s purpose: Government

The Hindu  

Alerting an accused by sharing with him information about arrest, FIR and allegations in a money laundering case would defeat the very purpose of the law, the government argued in the Supreme Court on Wednesday. Arguing before a three-judge Bench led by Justice A.M. Khanwilkar, Solicitor-General Tushar Mehta, for the government, said "the very purpose of the Prevention of Money …

EXPLAINER -PMLA
3 years, 1 month ago

EXPLAINER -PMLA

The Hindu  

The story so far: The draconian Prevention of Money Laundering Act of 2002 has evolved as the Government’s “hatchet” law in recent years, considering the series of raids and arrests of politicians, their relatives, and activists. The statement of objects and reasons of the PMLA Bill of 1999 refers to various international conventions and instruments dealing primarily with money laundering …

Transitioning Of The Law On Money Laundering In India
3 years, 2 months ago

Transitioning Of The Law On Money Laundering In India

Live Law  

Prior to the year 2005, the casting of money laundering had been difficult. Scheduled Offences The Prevention of Money Laundering Act, 2002, the scheduled offences had provisions from six different legislations, including the Indian Penal Code 1860, NDPS Act, 1985; Arms Act, 1959, Wildlife Protection Act, 1972, Immoral Traffic Act, 1956 and Prevention of Corruption Act, 1988. Nikesh Tarachand Shah …

Private cryptocurrencies pose immediate risks to customer protection, prone to frauds: RBI
3 years, 3 months ago

Private cryptocurrencies pose immediate risks to customer protection, prone to frauds: RBI

The Hindu  

Private cryptocurrencies pose immediate risks to customer protection and are prone to frauds and extreme price volatility, given their highly speculative nature, the Reserve Bank of India said in its financial stability report released on Wednesday. The latest report noted that the proliferation of private cryptocurrencies across the globe has sensitised regulators and governments to the associated risks. "Private cryptocurrencies …

Private Cryptocurrencies Pose Immediate Risks to Customer Protection, Says RBI
3 years, 3 months ago

Private Cryptocurrencies Pose Immediate Risks to Customer Protection, Says RBI

News 18  

Mumbai, Dec 29: Private cryptocurrencies pose immediate risks to customer protection and are prone to frauds and extreme price volatility, given their highly speculative nature, the Reserve Bank of India said in its financial stability report released on Wednesday. The latest report noted that the proliferation of private cryptocurrencies across the globe has sensitised regulators and governments to the associated …

Regulation, not ban: on cryptocurrencies
3 years, 4 months ago

Regulation, not ban: on cryptocurrencies

The Hindu  

Eight years after the RBI issued its first advisory cautioning holders of virtual currencies about the potential financial and security risks, and two years after drafting a Bill to ban cryptocurrencies, the Government is set to introduce legislation that would, if passed, officially proscribe such currencies. Prime Minister Narendra Modi had in a video address to the Sydney Dialogue earlier …

No Ban, Govt Regulating Cryptocurrency to Check Role in 'Hawala', Terror Funding: Sources
3 years, 4 months ago

No Ban, Govt Regulating Cryptocurrency to Check Role in 'Hawala', Terror Funding: Sources

News 18  

The Centre’s move to bring a bill in the upcoming Winter Session of Parliament to regulate cryptocurrency has sparked a ripple effect, with bitcoin prices crashing to the lowest in a month. The government is concerned about the underground transactions happening against cryptocurrency — particularly its role in ‘hawala’ and terror funding,” they said. It was then also discussed that …

Crypto Money-Laundering, Fear of Terror-Financing Bring Centre to Table, PM Leads Meet
3 years, 4 months ago

Crypto Money-Laundering, Fear of Terror-Financing Bring Centre to Table, PM Leads Meet

News 18  

A high-level meeting, chaired by Prime Minister Narendra Modi, on the way forward for cryptocurrencies in the country concluded on Saturday. Top officials discussed issues related to the matter and put forth their concern over the unregulated crypto market in India and what it can lead to. Sources said that the meeting was a “very comprehensive one” and was an …

Banks Wary of Crypto Trades: A Step Towards Crypto Ban in India?
3 years, 10 months ago

Banks Wary of Crypto Trades: A Step Towards Crypto Ban in India?

The Quint  

The move of ICICI blocking transaction related to cryptocurrencies has come after a report published by Reuters on 14 March, which states that trading, mining and holding cryptocurrency could soon be illegal in India as the Indian government is proposing a new Bill that could ban all transactions related to cryptocurrencies. According to a report by Reuters, the new Bill …

Government makes first move to regulate Bitcoin, asks companies to disclose all cryptocurrency dealings
4 years ago

Government makes first move to regulate Bitcoin, asks companies to disclose all cryptocurrency dealings

India Today  

Indian government has made its first move to regulate bitcoin and other cryptocurrency by making it mandatory for all companies in the country to disclose their dealings in virtual currency in their balance sheets. The move will boost institutional adoption of crypto assets in India and will take Indian crypto industry to the next phase of growth,” Shivam Thakral, CEO, …

Govt seeks disclosure of crypto transactions, holdings
4 years ago

Govt seeks disclosure of crypto transactions, holdings

Live Mint  

In a first, the ministry of corporate affairs has asked all companies in the country to mandatorily disclose any dealings in cryptocurrency or virtual currency in their balance sheets. This is a major step towards regulating crypto assets in India and is expected to bring in a lot of transparency in reporting or filing of crypto investments. The companies have …

Cryptocurrency In India : Legality, Challenges And Sustainability
5 years, 4 months ago

Cryptocurrency In India : Legality, Challenges And Sustainability

Live Law  

If during the 'barter era' of stone age, you proposed payments through e-wallets and other electronic/digital modes of payment and termed currencies as legal tenders, one would consider you lunatic, maniac and obnoxious. For providing expeditious, decentralised and anonymous transactions, over the years, the Crypto Currencies have gained immense popularity across world and have become one of the most widely …

Crypto-Currency Exchanges, The Play Ground Of Young India
6 years, 7 months ago

Crypto-Currency Exchanges, The Play Ground Of Young India

Live Law  

Crypto-currency Exchanges are the new playgrounds of Young India specifically the Young Technocrats and Restless Investors. Unlike the Fiat currencies which are issued by the Central Bank of a Country, the crypto-currency operates on a decentralized computing network to form a consensus on exchange without any central controlling authority.It operates on simple mathematical regulations that everyone participating in the network …

Cryptocurrencies will boost illegal transactions: RBI to SC
6 years, 8 months ago

Cryptocurrencies will boost illegal transactions: RBI to SC

The Hindu  

The Reserve Bank of India on Friday said dealing in cryptocurrency will encourage illegal transactions. Cryptocurrencies are “a stateless digital currency” in which encryption techniques are used for trading and these ‘currencies’ operate independently of a Central bank like the RBI, “rendering it immune from government interference”. The federal bank and the Central government sought three weeks time from the …

Tightening noose around money laundering: RBI orders demand drafts must have name of purchaser from 15 September
6 years, 8 months ago

Tightening noose around money laundering: RBI orders demand drafts must have name of purchaser from 15 September

Firstpost  

The Reserve Bank of India too has thrown its weight behind the Modi government’s efforts with the latest one being making demand draft fool-proof insofar as money laundering is concerned. The Reserve Bank of India too has thrown its weight behind these efforts with the latest one being making demand draft fool-proof insofar as money laundering is concerned. Come 15 …

IT Department pays visit to Bitcoin exchanges
7 years, 3 months ago

IT Department pays visit to Bitcoin exchanges

Deccan Chronicle  

Bengaluru: In a first-ever move to understand and unearth the extent of transactions/ investments in Bitcoin – the crypto currency – in India, the Directorate of Income Tax, Karnataka & Goa on Wednesday piloted fact-finding searches at the nine exchanges of Bitcoin in the country, including two in Bengaluru. Similar visits were conducted in Bitcoin exchanges in Ghaziabad, Pune, Gurugram, …

SC Notice To Centre On Plea To Regulate Crypto Currency (Read Petition)
7 years, 4 months ago

SC Notice To Centre On Plea To Regulate Crypto Currency (Read Petition)

Live Law  

Supreme Court has sought the response of the Centre on a petition seeking regulation of the flow of Bitcoin and wanted that the virtual currency be made accountable to the exchequer.A bench headed by Chief Justice Dipak Misra issued notice to the ministries of Finance, Law and Justice, Information Technology, market regulator SEBI and the RBI.The plea filed by an. …

Now, drug trafficking in India via Darknet, Bitcoin
8 years, 8 months ago

Now, drug trafficking in India via Darknet, Bitcoin

India TV News  

New Delhi: Narcotics Control Bureau have detected two syndicates facilitating drug-trafficking in India through the cryptic ‘darknet’, and the clandestine and unregulated currency Bitcoin. NCB, the chief law enforcement and intelligence agency responsible for fighting drug trafficking and abuse of illegal substances, has interdicted two such syndicates operating in the country. “For the first time, we have detected drug traffickers …

Black money: SIT suggests amendments to PMLA
10 years, 4 months ago

Black money: SIT suggests amendments to PMLA

The Hindu  

Advocating inclusion of offences committed under various other statutes under the ambit of the Prevention of Money Laundering Act, the Special Investigation Team on black money has suggested institution of a statutory mechanism empowering the Enforcement Directorate to initiate proceedings suo motu. The SIT proposes that statutes like the Mines Act, the Mines and Mineral Development Act as also the …

Bank of India To Control Laundering With 3i Solution
16 years, 8 months ago

Bank of India To Control Laundering With 3i Solution

Firstpost  

All financial institutions globally are required to examine money laundering operations and report to the Financial Intelligence Unit of their respective countries for prevention of money laundering. 3i Infotech has announced that Bank of India, one of the leading public sector banks in India, has signed an agreement to implement AMLOCK, 3i Infotech’s Anti Money Laundering software. Today, all financial …

AML Implementations Extend Beyond Compliance
17 years, 11 months ago

AML Implementations Extend Beyond Compliance

Firstpost  

The US-led initiative to curb illegal money trade, fraud and money laundering activities is starting to catch on here in India as well. Majority of Indian banks and financial services entities are fast embracing Anti-Money Laundering technologies to counter such threats, as also to become compliant with the norms laid down by regulatory bodies such as the RBI. Highlighting the …

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