New Delhi:The Enforcement Directorate is investigating at least seven cases where offenders have used cryptocurrency to launder money, the ministry of finance said on Monday.
Pankaj Chaudhary, the minister of state for finance, informed the Lok Sabha that investigating agencies have received several complaints where a cryptocurrency route was taken by offenders to transfer proceeds of crime. “Reports have been received from Law Enforcement Agencies (LEAs) in connection with usage of cryptocurrency by cybercriminals,” Chudhari told the Lok Sabha.
The minister informed the house that the ED has been investigating seven cases under the Prevention of Money Laundering Act of 2002 in which cryptocurrency has been used for money laundering. “Cases investigated by the ED under PMLA reveal that the accused have laundered Proceeds of Crime through cryptocurrency,” the minister said.
Sharing the details of the investigation done by the Enforcement Directorate, Chaudhary said it has revealed that some foreign nationals and their Indian associates have laundered the proceeds of crime by using cryptocurrency accounts at certain exchange platforms. “In one such case, an accused has been arrested by the Enforcement Directorate in the year 2020 for facilitating the foreign-related accused companies to launder the proceeds of crimes by converting money generated out of crime into cryptocurrency and thereafter transfer to foreign countries,” informed the minister.
Chaudhary said a prosecution complaint has been filed in this case before the Special Court, PMLA. “So far, the Enforcement Directorate has attached proceeds of crime amounting to approximately Rs 135 crores under PMLA in above-mentioned cases,” the minister added.
Cryptocurrency: Fear of misuse
Cryptocurrency is a kind of digital token based on the use of blockchain technology that can be exchanged digitally. In some countries, cryptocurrencies such as Bitcoin, Ether, Dogecoin and others are legitimate. In India, the Reserve Bank of India has expressed concern on the use of cryptocurrencies as they remain unregulated. The RBI has also cautioned ordinary investors against fraudulent and misleading advertisements.
Prime Minister Narendra Modi has also expressed concerns over the potential misuse of cryptocurrency for money laundering and terror funding, saying that the democratic countries of the world must come together to mount a joint response against the misuse of cryptocurrencies. In this year’s budget, finance minister Nirmala Sitharaman announced the imposition of tax on trading in cryptocurrencies and other such digital assets. She also announced that the Reserve Bank of India would launch its own digital currency. The government was expected to introduce a bill in the Parliament for regulation of cryptocurrencies and other such digital assets last year but it has been deferred.
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