Virtual digital assets, India’s stand and the way ahead
1 year, 7 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; 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 digital assets; and participation in and provision of financial services related to an issuer’s offer and sale of a virtual digital asset. This means virtual digital assets platforms carrying out the said activities will now have to register as a reporting entity with the Financial Intelligence Unit-India. Even as India spearheads global coordination, ushering greater oversight on the domestic virtual digital assets ecosystem could provide much-needed assurance to everyday users as well as regulators.

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History of this topic

Govt has no timeline for regulatory guidelines for Virtual Digital Assets
1 week ago

Govt has no timeline for regulatory guidelines for Virtual Digital Assets

Live Mint  

New Delhi, December 16 : The government on Monday informed Lok Sabha that there is no anticipated timeline for the introduction of comprehensive regulatory guidelines for the Virtual Digital Assets industry in India. The government was asked by two members of Parliament whether it was taking steps to establish a comprehensive regulatory framework for the Virtual Digital Assets industry. The …

South Korea’s crypto law, the Virtual Asset User Protection Act (VAUPA), has come into effect
5 months ago

South Korea’s crypto law, the Virtual Asset User Protection Act (VAUPA), has come into effect

The Hindu  

South Korea’s new cryptocurrency law, the Virtual Asset User Protection Act, took effect from July 19 as the country’s Financial Services Commission stressed on the need for virtual asset service providers to safeguard customer funds and comply with national regulations. The Virtual Asset User Protection Act was enacted on July 18, 2023 and financial institutions covered under it were given …

Why did FIU IND act against virtual asset providers?
11 months, 3 weeks ago

Why did FIU IND act against virtual asset providers?

The Hindu  

The story so far: On December 28, the Financial Intelligence Unit India issued show-cause notices to 9 offshore virtual digital asset service providers, including Binance, Kucoin, Huobi, Bitfinex and MEXC Global, among others. In March 2023, Virtual Digital Asset Service Providers in India were brought under anti-money laundering/counter financing of terrorism regulations. To put it in perspective, the entities “though …

India's Financial Intelligence Unit Registers Over Two Dozen Crypto Service Providers
1 year ago

India's Financial Intelligence Unit Registers Over Two Dozen Crypto Service Providers

ABP News  

In a notable development for the Indian cryptocurrency sector, over two dozen digital currency service providers have registered with India's Financial Intelligence Unit. Here are some key case studies and developments: Enforcement Directorate's Proactive Measures India's Enforcement Directorate has been actively investigating several money laundering cases through cryptocurrencies. Regulatory Framework Strengthening India has subjected cryptocurrency trading to anti-money laundering laws, …

28 virtual digital asset service providers register with Centre
1 year ago

28 virtual digital asset service providers register with Centre

Deccan Chronicle  

New Delhi: The government on Monday declared that as many as 28 virtual digital assets or VDA service providers, including WazirX, Coin DCX and Coin Switch, have registered themselves with the Financial Intelligence Unit-India. As per the finance ministry, entities dealing in VDAs, crypto exchanges and intermediaries would be considered ‘reporting entity’ under the Prevention of Money Laundering Act. To …

As G-20 plans crypto regulatory framework, India may shelve plan for outright ban
1 year, 3 months ago

As G-20 plans crypto regulatory framework, India may shelve plan for outright ban

The Hindu  

With the G-20 countries agreeing to explore a coordinated regulatory framework for crypto assets, India could wait a while longer before firming up its domestic regulations for crypto currencies, and initiate a dialogue with stakeholders on the way forward. Any country can allow higher risks if they want, or ban it if they like, but whatever one does, it should …

Concrete plan needed for crypto: G20 paper
1 year, 3 months ago

Concrete plan needed for crypto: G20 paper

Hindustan Times  

The crypto ecosystem needs comprehensive regulatory and licensing mechanisms for macroeconomic and financial stability, a synthesis paper prepared for the G20 has said, cautioning governments that widespread adoption of cryptocurrencies and assets based on them could undermine the effectiveness of monetary policy, circumvent capital flow management measures, exacerbate fiscal risks, divert resources available for financing the real economy, and threaten …

Virtual digital assets regulation in G20 countries: Towards a global governance framework
1 year, 3 months ago

Virtual digital assets regulation in G20 countries: Towards a global governance framework

Hindustan Times  

Statements made by public officials in certain G20 member-States as well commentaries by financial analysts suggest that emerging market economies stand on a different footing from developed counterparts in their regulation of virtual digital assets. This paper examines this notion by presenting a quantitative analysis of the positions taken by G20 member-countries on different facets of virtual digital assets regulation. …

Virtual digital assets: Lessons from global trends in regulation
1 year, 3 months ago

Virtual digital assets: Lessons from global trends in regulation

Live Mint  

Leading international organizations have recently produced policy notes on crypto-assets, also known as virtual digital assets as per the Finance Act of 2022. Given BIS's considerable influence, its observations are expected to significantly impact upcoming G20 discussions on virtual digital assets. BIS has outlined three high-level policy options concerning virtual digital assets in its recent paper: 1) an outright ban, …

India’s G20 presidency: For Virtual Digital Assets
1 year, 4 months ago

India’s G20 presidency: For Virtual Digital Assets

Hindustan Times  

Virtual Digital Assets were, for the longest period, considered forbidden fruits, capable of causing financial instability and compromising transactional integrity. An SOP focused on the four priority areas - Consumer and Investor Protection, Access to Law Enforcement Agencies to Address Fraudulent Practices, Regulatory Arbitrage and Financial Stability – holds the potential to address the existing lacunae in the VDA framework. …

Any action on crypto assets will have to be global: FM Nirmala Sitharaman
1 year, 8 months ago

Any action on crypto assets will have to be global: FM Nirmala Sitharaman

Deccan Chronicle  

Washington: Union Finance Minister Nirmala Sitharaman on Thursday said that there was a greater acceptance among Group of 20 member countries that any new regulations on the crypto assets need to be globally coordinated. "I am glad to say that there is a greater acceptance among all G20 members, that any action on crypto assets will have to be global. …

Cryptos Under PMLA: A Move To Go A Long Way Towards Empowering Legitimate Businesses
1 year, 8 months 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 …

Explained | Why is crypto trade within PMLA ambit?
1 year, 9 months 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 …

Belated, but essential: The Hindu Editorial on bringing all trade in virtual digital assets under the PMLA
1 year, 9 months 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 …

Government amends KYC to add non-profit organisations, ‘politically exposed persons’
1 year, 9 months ago

Government amends KYC to add non-profit organisations, ‘politically exposed persons’

The Hindu  

The Finance Ministry has amended the Prevention of Money Laundering Rules for widening the scope of Know your Customer norms to include Politically Exposed Persons, non-profit organisations and those dealing in virtual digital assets as reporting entities. Through a notification, the Ministry has made the exchanges and intermediaries dealing in VDA, such as cryptocurrency, reporting entities under the Prevention of …

Govt ropes in cryptocurrency trade in PMLA. How does it help market, investors
1 year, 9 months 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 …

Centre Brings Crypto Transactions Under Money Laundering Laws
1 year, 9 months 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
1 year, 9 months 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
1 year, 9 months 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 …

Central agencies gear up for FATF mutual evaluations
1 year, 10 months ago

Central agencies gear up for FATF mutual evaluations

The Hindu  

Government agencies have expedited efforts to further strengthen the anti-money laundering and counter-terror financing frameworks in view of the coming Financial Action Task Force assessment of India in the fourth round of mutual evaluations expected later this year. The government has also organised a series of conferences focused on combating terror financing, including the United Nations Security Council Counter-Terrorism Committee …

Budget 2023-24 Expectation: Need for clarity on equalisation levy; higher tax on virtual digital assets
1 year, 10 months ago

Budget 2023-24 Expectation: Need for clarity on equalisation levy; higher tax on virtual digital assets

Firstpost  

Among the tax base broadening initiatives taken by the government in recent years in the digital sector, two key measures that have stood out are the equalisation levy and higher tax on virtual digital assets. Taxing digital economy Unlike the digital services tax applied by some other countries, the widened scope of EQL provisions in India covers even the traditional …

Budget 2023: FM Nirmala Sitharaman must classify cryptocurrencies as asset class rather than speculative instruments
1 year, 10 months ago

Budget 2023: FM Nirmala Sitharaman must classify cryptocurrencies as asset class rather than speculative instruments

Firstpost  

Cryptocurrencies have been gaining momentum worldwide for the past two years, making big headlines. Tax on VDAs The Union Budget of India in 2022 has introduced a system of taxation on virtual digital assets with a 30 percent tax on gains and 1 percent on Tax Deducted at Source. Need for a progressive approach to taxation The crypto industry is …

Crypto tax rules: Should you sell your crypto assets before Mar 31?
2 years, 8 months ago

Crypto tax rules: Should you sell your crypto assets before Mar 31?

Live Mint  

The Indian government has tightened bolts for trading in cryptocurrencies. On Friday, Lok Sabha approved taxation rules on virtual digital assets or "crypto tax" that was proposed in Budget 2022-23 by clearing the Finance Bill 2022. Under the bill, section 115BBH deals with taxes on virtual digital assets, while clause prohibits setting off a loss from crypto assets against income …

Explained | What is the debate around the legality of cryptocurrencies after the announcement of a 30% tax?
2 years, 10 months ago

Explained | What is the debate around the legality of cryptocurrencies after the announcement of a 30% tax?

The Hindu  

The story so far: In her Budget speech, Finance Minister Nirmala Sitharaman introduced a 30% tax on income earned from transfer of virtual digital assets. At a press conference after presenting the Budget, Ms. Sitharaman said consultation is underway with stakeholders on digital assets, adding that there is no clarity yet on how the Government of India will regulate cryptocurrencies. …

By Taxing Crypto Assets, India Has Taken First Step towards Regulating This Volatile Space
2 years, 10 months ago

By Taxing Crypto Assets, India Has Taken First Step towards Regulating This Volatile Space

News 18  

The unregulated space of cryptocurrency has been largely perceived as volatile, unsafe and susceptible to untimely changes. As part of Budget 2022 proposals, transfer of virtual digital assets shall now be liable to Income Tax at the highest marginal rate of 30 per cent plus applicable surcharges. Launch of Digital Currency The Budget proposals lay emphasis on India adopting an …

A disjointed response: The Hindu Editorial on crypto assets and regulation
2 years, 10 months ago

A disjointed response: The Hindu Editorial on crypto assets and regulation

The Hindu  

One of the most striking moves in the Union Budget’s taxation proposals for 2022-23 is the introduction of a taxation regime for virtual digital assets — evolving manifestations of cryptocurrencies, codes and non-fungible tokens. Finance Minister Nirmala Sitharaman has proposed to tax all profits from transactions in such assets at 30% along with the applicable surcharge and cess, and a …

Investing in crypto? Transactions done before April 2022 won’t be tax-free. Read
2 years, 10 months ago

Investing in crypto? Transactions done before April 2022 won’t be tax-free. Read

Live Mint  

The Central Board of Direct Taxes on Thursday clarified that crypto transactions done before April this year will not be tax free as was believed by some. During There has been a phenomenal increase in transactions in virtual digital assets and the magnitude and frequency of these transactions have made it imperative to provide for a specific tax regime. “Accordingly, …

India budget 2022: India announces 30% tax on all cryptocurrencies and NFTs
2 years, 10 months ago

India budget 2022: India announces 30% tax on all cryptocurrencies and NFTs

The Independent  

Sign up to our free weekly IndyTech newsletter delivered straight to your inbox Sign up to our free IndyTech newsletter Sign up to our free IndyTech newsletter SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy India has imposed a 30 per cent tax on any income from the …

Budget 2022: Cryptos, blockchain & 30 percent tax; All you need to know
2 years, 10 months ago

Budget 2022: Cryptos, blockchain & 30 percent tax; All you need to know

Live Mint  

Until a day before the Budget speech, most of us — especially blockchain aficionados — were eagerly awaiting some substantive announcement on cryptocurrencies. Tax on the transfer of digital assets such as cryptocurrencies and NFTs will now be levied at the rate of 30 percent, announced Union Finance Minister Nirmala Sitharaman during the Union Budget 2022 speech. While expressing the …

Union Budget 2022: India introduces 30% cryptocurrency tax; how it will affect you
2 years, 10 months ago

Union Budget 2022: India introduces 30% cryptocurrency tax; how it will affect you

Firstpost  

Union Budget 2022-23: The announcement of a heavy tax on crypto income has come as a big disappointment for crypto investors as finance minister Nirmala Sitharaman also gave no relief in case of losses Finance minister Nirmala Sitharaman in her 2022 Budget Speech Tuesday said that 30 per cent tax would be charged on income from the transfer of virtual …

Union Budget 2022 | Virtual digital assets such as cryptos, NFTs to be taxed at 30%
2 years, 10 months ago

Union Budget 2022 | Virtual digital assets such as cryptos, NFTs to be taxed at 30%

The Hindu  

Finance Minister Nirmala Sitharaman, during her Budget speech in Parliament on Tuesday, announced a scheme for taxation of virtual digital assets, such as cryptocurrencies and non-fungible tokens. Stating there had been a phenomenal increase in transactions in virtual digital assets, she said the magnitude and frequency of these transactions had made it imperative to provide for a specific tax regime. …

Budget 2022: Transfer of virtual digital asset to be taxed at 30%, says FM Sitharaman on Crypto taxation
2 years, 10 months ago

Budget 2022: Transfer of virtual digital asset to be taxed at 30%, says FM Sitharaman on Crypto taxation

India Today  

Finance Minister Nirmala Sitharaman on Tuesday provided details pertaining to the taxation on virtual digital assets. In her Budget 2022 speech, FM Sitharaman proposed that any income from the transfer of any virtual digital asset will be taxed at the rate of 30 per cent. "I propose to provide that any income from transfer of any virtual digital asset shall …

Regulation, not ban: on cryptocurrencies
3 years 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 …

Cryptocurrency Curbs in India: How Other Nations are Treading the Digital Currency Path
3 years ago

Cryptocurrency Curbs in India: How Other Nations are Treading the Digital Currency Path

News 18  

India is all set to bring in new rules to regulate cryptocurrency as the Union government plans to introduce a Bill to ban all private cryptocurrencies in the upcoming winter session of Parliament. As per the Lok Sabha Bulletin released on Tuesday, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021 seeks to create a facilitative framework for the …

Govt seeks disclosure of crypto transactions, holdings
3 years, 8 months 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 …

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