BIG DECISION by Modi govt! Cryptocurrency businesses to come under money laundering law

Share

Tweet

Share

Share

Email

Comments

Cryptocurrency News: In a big move by PM Narendra Modi-led Indian Government, cryptocurrency businesses have now been brought under the ambit of money laundering provisions to tighten oversight of digital assets.

In a gazette notification issued by the Ministry of Finance on Tuesday, all crypto business, including (exchanges, custodians, wallet providers etc) would come under the Prevention of Money-laundering Act, 2002 (PMLA).

Read More: IDBI Bank proclaims DHFL promoters Kapil and Dheeraj Wadhawan as ‘wilful defaulters’ of Rs 758 crore loans

“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 orinstruments 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.

Read More: Kotak Mahindra Bank Hikes Interest Rates on Fixed Deposits by up to 50 bps. Check New Rates Here

“Explanation:- For the purposes of this notification “virtual digital asset” shall have thesamemeaning assigned to it in clause (47A) ofsection 2 of the Income-tax Act, 1961 (43 of 1961),” added the Ministry.

Earlier in the Union Budget 2023-24, Finance Minister Nirmala Sitharaman had announced that any income from transfer of digital asset will be taxed at 30%.

“I propose to provide that any income from transfer of any virtual digital asset shall be taxed at the rate of 30%. No deduction in respect of any expenditure or allowance shall be allowed while computing such income, except cost of acquisition,” the FM had said.