On March 7th, the Ministry of Finance published a notification in The Gazette of India stating that several crypto transactions would be subjected to the Prevention of Money-Laundering Act (PMLA) 2002.
The move aims to regulate the crypto industry in India and requires all crypto businesses to perform necessary KYC (know your customer) and transaction monitoring as part of their process.
According to the notification, the Prevention of Money Laundering Act (PMLA) applies to financial services related to the sale and issuance of virtual assets.
These services encompass exchanging virtual digital assets for fiat currencies, transferring virtual digital assets, and managing or safeguarding virtual digital assets. Moreover, participating in and offering financial services related to the sale and issuance of virtual digital assets are also covered.
Under the PMLA, financial institutions must maintain records of all transactions for the past ten years, provide these records to officials upon request, and verify the identity of all clients. This development is being commended as a move towards promoting greater accountability and transparency in the cryptocurrency industry in India.
Founder of WazirX India, Nischal, tweeted in support of the move, stating that it was good progress towards regulating the crypto industry in India. With the notification in place, all crypto businesses in the country will come under the ambit of the PMLA.
While the notification doesn’t provide many details, it is a positive step towards ensuring that the crypto industry in India operates within a framework of regulations and guidelines.
As the industry continues to evolve and expand, it is crucial to establish clear guidelines that can protect investors and consumers alike. This move by the Ministry of Finance is a step in the right direction toward achieving that goal.
Indian Crypto Exchange Celebrates Birthday
Meanwhile, Indian crypto exchange WazirX is celebrating its birthday and is inviting its followers to join in by submitting unique and creative birthday wishes. They have announced a giveaway of ₹55,555 worth of $WRX to 25 people who come up with the most original wishes.
According to the tweet, to participate, users must like the tweet and quote it with their own special birthday message using the hashtag WazirXTurns5. The exchange has encouraged participants to be creative and think outside the box, allowing for anything from images to videos as long as it’s authentic and heartfelt.
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