India’s anti-money laundering laws apply to cryptocurrency trading, the government said in a March 7 announcement.
Exchanges between virtual digital assets and fiat currencies, exchanges between one or more forms of virtual digital assets, and transfers of digital assets are subject to anti-money laundering laws, the statement said.
Custody or management of virtual digital assets and participation in financial services related to the offering and sale of virtual digital assets are also covered, the statement said.
India is yet to finalize legislation and regulations regarding cryptocurrencies, even though the country’s central bank has warned against their use on several occasions.
The Reserve Bank of India has said that cryptocurrencies should be banned as they are similar to Ponzi schemes.
Extending India’s money-laundering rules to cryptocurrencies gives authorities greater powers to control the movement of these assets outside the country’s borders.
As part of its lead-up to the G-20 forum, the Narendra Modi-led administration has pushed for a broader global agreement to tackle the risks posed by cryptocurrencies.
(Except for the headline, this story was not edited by NDTV staff and was published on a syndicated channel.)
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The rupee fell 12 paise to close at 82.82 against the US dollar.