As part of its efforts to tighten control of the digital assets, the Indian government has placed money laundering provisions on the cryptocurrency industry.
According to Bloomberg, the Finance Ministry of India stated on Tuesday that anti-money laundering law has been applied to cryptocurrency trading, safekeeping, and associated financial services.
According to Jaideep Reddy, counsel at law firm Trilegal, the action aligns with a global trend of forcing digital assets and services to adopt anti-money laundering requirements similar to other regulated businesses such as financial institutions (bank) or stock market brokers.
Regulation on the cryptocurrency market is a major concern around the world. Thus the Indian government said in the 2022 budget that, all virtual digital assets (VDAs) presented or cryptocurrency assets that are sold for profit will be taxed at 30%.
The statement led to a downward trend in the domestic trading volume of the digital asset, with speculators and investors witnessing significant declines.
Nirmala Sitaraman, Finance Minister of India, back in october said, a need exists for cryptocurrency regulations, and all governments worldwide must work together to achieve it.
Also read: Indian Budget 2023 Leaves the 30% Crypto Tax Unchanged
