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 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” will be now be covered by PMLA, 2002, said the notification. Last month, Finance Minister Nirmala Sitharaman told Parliament that India was discussing with the G-20 member countries the need to develop a standard operating protocol for regulating crypto assets.

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History of this topic

The implications of treating Virtual Digital Assets as taxable properties
3 weeks, 4 days ago

The implications of treating Virtual Digital Assets as taxable properties

The Hindu  

As digital economies expand and blockchain technology reshapes global finance, governments worldwide are grappling with the classification, regulation and taxation of Virtual Digital Assets. VDAs as property and capital assets For the first time in India, the Income Tax Bill, 2025 explicitly treats VDAs as property ) and capital assets. The bill categorically states that VDAs, which include crypto assets, …

Have crypto earnings? New Income Tax Bill will see it as 'undisclosed income' during searches
1 month, 2 weeks ago

Have crypto earnings? New Income Tax Bill will see it as 'undisclosed income' during searches

Firstpost  

The new Income Tax Bill, set to be tabled on February 13, categorises virtual digital assets, commonly known as cryptocurrencies, as ‘undisclosed income’ during searches, alongside existing categories like gold and bullion, according to a report The new Income Tax Bill, set to be tabled on February 13, categorises virtual digital assets, commonly known as cryptocurrencies, as ‘undisclosed income’ during …

Crypto assets to be included in assessing undisclosed income, says Sitharaman in Budget
1 month, 4 weeks ago

Crypto assets to be included in assessing undisclosed income, says Sitharaman in Budget

Hindustan Times  

Finance Minister Nirmala Sitharaman in her budget speech has proposed that “virtual digital asset” should be included in defining undisclosed income, the latest step by the government to tighten oversight of cryptocurrencies. "It is proposed to add the term 'virtual digital asset' to the said definition of undisclosed income of the block period," the Budget document said. The move comes …

Bitcoin profits even before VDA rules to be treated as capital gains: Jodhpur ITAT
3 months, 1 week ago

Bitcoin profits even before VDA rules to be treated as capital gains: Jodhpur ITAT

New Indian Express  

NEW DELHI: In a first of its kind legal dispute over taxation of bitcoins, the Jodhpur Income Tax Appellate Tribunal has ruled that gains for sale of bitcoins even before the introduction of virtual digital asset regime in 20202 should be treated as capital gains for the purpose of taxation. The ITAT order says that even though Bitcoin is intangible, …

Govt has no timeline for regulatory guidelines for Virtual Digital Assets
3 months, 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
8 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?
1 year, 2 months 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 …

28 virtual digital asset service providers register with Centre
1 year, 3 months 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 …

Virtual digital assets: Lessons from global trends in regulation
1 year, 6 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, 8 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. …

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; …

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 …

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 …

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 …

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 …

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 …

Crypto tax rules: Should you sell your crypto assets before Mar 31?
3 years 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?
3 years, 1 month 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
3 years, 1 month 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
3 years, 1 month 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
3 years, 1 month 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, …

Virtual digital asset: How Union Budget 2022 brings cryptocurrency within tax net
3 years, 1 month ago

Virtual digital asset: How Union Budget 2022 brings cryptocurrency within tax net

Firstpost  

The Finance Minister has also clarified that the government doesn’t consider cryptocurrency as a currency, but shall treat it as a virtual digital asset The Union Budget 2022 announced on Tuesday by Finance Minister Nirmala Sitharaman has finally brought in a lot of clarity on how cryptocurrency will be taxed from Financial Year 2022-23, which is the Assessment Year 2023-24. …

Union Budget 2022: 30% Tax On Digital Assets Is Likely To Make Crypto A Legal Asset
3 years, 1 month ago

Union Budget 2022: 30% Tax On Digital Assets Is Likely To Make Crypto A Legal Asset

ABP News  

New Delhi: In a big boost to cryptocurrency enthusiasts, Finance Minister Nirmala Sitharaman Tuesday introduced a 30 per cent tax on digital assets, essentially meaning the Narendra Modi government is moving towards legalising cryptocurrency as a legal asset. Dr Arun Singh, global chief economist, Dun and Bradstreet, believes that the taxation of Virtual Digital Assets without setoff of loss with …

Virtual currencies face more oversight
3 years, 9 months ago

Virtual currencies face more oversight

China Daily  

China is expected to issue tougher measures to intensify the crackdown on illegal mining and trading of virtual currencies, after the central bank reinforced a ban on related services provided by financial institutions, experts said on Tuesday. Virtual currency speculation disrupts economic and financial order, increases the risks of illegal and criminal activities, such as illicit cross-border asset transfers and …

RBI cracks down on virtual currencies like Bitcoins; plans own cryptocurrency
6 years, 11 months ago

RBI cracks down on virtual currencies like Bitcoins; plans own cryptocurrency

India TV News  

The Reserve Bank today tightened the rules to discourage use of virtual currencies like Bitcoins and also announced a study to explore introduction of ‘fiat’ digital currencies which can be issued by it. These operators are required to stop having a business relationship with the entities dealing with virtual currencies forthwith and unwind the existing relationships within three months,” Kanungo …

RBI asks banks to stop services to those dealing in virtual currencies like bitcoins
6 years, 11 months ago

RBI asks banks to stop services to those dealing in virtual currencies like bitcoins

Firstpost  

RBI said it has repeatedly cautioned users, holders and traders of VCs, including bitcoins, regarding various risks associated in dealing with such virtual currencies Mumbai: Reserve Bank of India on Thursday directed all regulated entities including banks not to provide services to businesses dealing in virtual currencies like bitcoins, so as to protect consumer interest and check money laundering. Technological …

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, …

31 May is the deadline for suggesting policy on virtual currencies, including Bitcoin, to the Indian Government
7 years, 10 months ago

31 May is the deadline for suggesting policy on virtual currencies, including Bitcoin, to the Indian Government

Firstpost  

The Government and the RBI has repeatedly cautioned the citizens of the country against the use of virtual currencies such as bitcoin, dogecoin and litecoin. The Committee is chaired by the Special Secretary and has representatives from the Department of Economic Affairs, Department of Financial Services, Department of Revenue, Ministry of Home Affairs, Ministry of Electronics and Information Technology, Reserve …

Virtual currencies vulnerable to money laundering: US Justice
11 years, 4 months ago

Virtual currencies vulnerable to money laundering: US Justice

Firstpost  

Many virtual currency services do not have the proper controls in place to prevent money laundering and stop bad actors… Many virtual currency services do not have the proper controls in place to prevent money laundering and stop bad actors from dodging U.S. laws, a top Justice Department official will tell lawmakers on Monday. “Many are still struggling with implementing …

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