Regulation against money laundering applied to crypto trading, and associated financial services.
FIU-IND will then receive reports of suspicious activities from Indian crypto exchanges.
The latest action by the Indian government to tighten control over digital assets is the imposition of anti-money laundering regulations on the cryptocurrency industry. According to reports, the Finance Ministry specified that the regulation against money laundering has been applied to cryptocurrency trading, storage. And also associated financial services.
The Financial Intelligence Unit India (FIU-IND) will then receive reports of suspicious activities from Indian cryptocurrency exchanges. India strengthened its tax laws on the cryptocurrency industry last year. That is levying a fee on trading in addition to other measures. The volume of domestic trading fell as a result of these actions and a global decline in digital assets.
Last month, Nirmala Sitharaman, the finance minister, notified the legislature that India and the G-20 members were discussing the urgency of establishing a standard operating procedure for governing crypto assets. For any specific legislation on these sectors to be fully effective, she had mentioned that Web3 and crypto assets were still relatively new. And also developing industries that required substantial international cooperation.