The PMLA would cover the exchange of virtual digital assets for fiat money, the exchange of one or more types of virtual digital assets, the transfer of virtual digital assets, the storage or management of virtual digital assets or tools that allow control over virtual digital assets, as well as involvement in and the delivery of financial services associated with the selling of a virtual digital asset by an issuer.
The government made a significant move earlier this week regarding bitcoin transactions. The Center tightened control of digital assets earlier this week on March 7, bringing bitcoin enterprises within the umbrella of anti-money laundering regulations. All cryptocurrency enterprises, including exchanges, custodians, wallet providers, etc., would be subject to the Prevention of Money-laundering Act of 2002, according to a gazette announcement released by the Finance Ministry on Tuesday (PMLA).
The most recent action, which brings virtual digital assets within the Money Laundering Act, is consistent with the government’s considerations towards the introduction of its own digital currency. The Financial Intelligence Unit India must thereafter be notified by Indian cryptocurrency exchanges of any suspicious conduct (FIU-IND).