BlocksInform
The Indian government has put the crypto sector under Prevention of Money Laundering Act (PMLA). But is it a signal of greater regulation to come?
According to the Ministry of Finance, all Virtual Digital Assets businesses will come under PMLA. This that the businesses would have to perform and report:
- Know your Transactions (KYT)
- Transactions monitoring and reporting
- Address screening and reporting
- Suspicious Activities Reports (SARs)
- Suspicious Transactions Report (STRs)
Experts Encouraged by Crypto Regulations
The Indian industry stakeholders have mostly welcomed the government’s decision. Nischal Shetty, the Chief Executive Officer of the WazirX exchange, has called it a “good step towards regulating the crypto industry in India.”
All crypto businesses in the country would come under ambit of PMLA
This is a good step towards regulating the crypto industry in India
This also ensures all crypto businesses must perform necessary KYC, Transaction monitoring etc as part of their process.
Good progress ?? pic.twitter.com/lVhs5LWG4I
— Nischal (Shardeum) ?? (@NischalShetty) March 8, 2023
Sumit Gupta, the CEO of CoinDCX exchange, told Moneycontrol, “Slowly but surely, we are moving towards a regulated crypto ecosystem! Entities such as CoinDCX are now required by law to conduct due diligence and enhanced due diligence under the PMLA.”
Gaurav Dahake, CEO of exchange, told BeInCrypto that they are studying the implications of the new PMLA requirements. He says, “We already comply with the norms of transaction monitoring, etc. What additional things would be there we need to figure out.”
Crypto influencer Keyur Rohit believes, “This is the dawn of a new era for the crypto industry, and the future looks bright.”
A COINSWITCH spokesperson told BeInCrypto, “The new rules are introduced to prevent misuse of crypto, such as money laundering, and they do not stop the regular, KYC-verified conversion of crypto to INR users do on the CoinSwitch app or CoinSwitch PRO platforms.
Crypto regulations have become a focal point of India’s presidency of the G20 intergovernmental forum. The Finance Minister, Nirmala Sitharaman, is seeking a globally coordinated effort to regulate the asset class.
Crypto is on India's G20 agenda. Govt. Campaign Continues To Inform Youth On Crypto Investment Risks: Nirmala Sitharaman pic.twitter.com/1TMj1QcZTr
— Crypto India (@CryptooIndia) February 21, 2023
Got something to say about crypto regulation in India or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on FacebookTwitter
