Crypto In Crosshairs: India’s Latest Anti-Money Laundering Measures Shake Industry

Key Points:

• India has imposed anti-money laundering legislation on the cryptocurrency sector.
• The move aligns with a global trend requiring digital-asset platforms to follow anti-money laundering standards.
• Implementing compliance measures is expected to require time and resources, potentially creating additional costs and administrative duties for businesses.

India Cracks Down on Crypto with New Money Laundering Provisions Last year’s stringent tax rules on cryptocurrency trading in India were just the beginning. Read about the latest anti-money laundering provisions and how they may impact businesses operating in the sector.

India has tightened oversight of the cryptocurrency sector by imposing money laundering provisions. As per Bloomberg, the Finance Ministry announced on Tuesday that anti-money laundering legislation will now apply to crypto trading, safekeeping, and related financial services.

This move by India aligns with a global trend requiring digital-asset platforms to follow anti-money laundering standards like those followed by other regulated entities such as banks or stock brokers.

Last year, India implemented more stringent tax rules on the crypto sector, including applying a levy on trading. These moves and a global rout in digital assets caused a plunge in domestic trading volumes. India’s Enforcement Directorate, which investigates money laundering and forex violation cases, has already been probing crypto companies, including exchanges CoinSwitch Kuber and WazirX.

Jaideep Reddy, counsel at law firm Trilegal, commented on the latest anti-money laundering measure, stating that “implementing the requisite compliance measures is likely to require time and resources.” This sentiment echoes concerns among industry employees that the new provisions will burden businesses with additional costs and administrative duties.

Overall, India’s move to tighten oversight of the crypto sector is part of a broader global trend of increased regulatory scrutiny. While it may create challenges for businesses operating in the space, it aims to prevent illicit activities such as money laundering and terrorist financing.

Coincu previously reported Armstrong believes that centralized actors will be responsible for avoiding money laundering and maintaining transaction monitoring mechanisms.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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