New Delhi:In a major decision, the Central government has brought cryptocurrency businesses under money laundering provisions thus further strengthening the hold on the digital assets sector.
On Tuesday, the Ministry of Finance issued a Gazette notification announcing that all crypto businesses, including (exchanges, custodians, wallet providers etc) would come under the Prevention of Money-laundering Act, 2002 (PMLA).
“In exercise of the powers conferred by sub-clause (vi) of clause (sa) of sub-section (I) of section 2 of the Prevention of Money-laundering Act, 2002 (15 of 2003) (hereinafter referred to the as the Act), the Central Government hereby notifies that the following activities when carried out for or on behalf of another natural or legal person in the course of business as an activity for the purposes of said sub-sub-clause, namely:- (i) exchange between virtual digital assets and fiat currencies; (ii) exchange between one or more forms of virtual digital assets; (iii) transfer of virtual digital assets; (iv) safekeeping or administration of virtual digital assets or instruments enabling control over virtual digital assets; and (v) participation in and provision of financial services related to an issuer's offer and sale of a virtual digital asset,” read the Gazette notification.