Modi Government: Cryptocurrency Businesses to Fall under Money Laundering Laws
Under the leadership of the Modi Government, the Ministry of Finance has released an official Gazette notification declaring that all cryptocurrency businesses would be covered under the ambit of money laundering laws. The money laundering laws include Prevention of Money-laundering Act, 2002 (PMLA) primarily and few other accessory laws.
Modi Government: Cryptocurrency Businesses to Fall under Money Laundering Laws
What Cryptocurrency Business Would Fall under Money Laundering Laws?
The cryptocurrency businesses that the Gazette notification has declared to fall under the money laundering laws are, “(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 or instruments 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.”
Modi Government: Cryptocurrency Businesses to Fall under Money Laundering Laws
Implications of This Legal Development by The Modi Government
A confusion exists as to whether trading in virtual digital assets would amount to money laundering. However, the effect of bringing cryptocurrency businesses under the PMLA Act is not such. It only means that the transactions occurring in cryptocurrency businesses would now be governed by the rules and norms of the money laundering laws. It is only a protective measure brought about by the Modi government to ensure that cryptocurrency businesses are fair and genuine.
Modi Government: Cryptocurrency Businesses to Fall under Money Laundering Laws
Taxation on Cryptocurrency Businesses
Apart from the fact that cryptocurrency businesses too would be governed by money laundering laws, as declared under the Union Budget 2023, cryptocurrency transactions would also be taxed at 30% without the application of any exemptions.
For more updates keep visiting our website www.topstoriesworld.com where we provide unbiased, true and top stories of the world.
Modi Government: Cryptocurrency Businesses to Fall under Money Laundering Laws
What Cryptocurrency Business Would Fall under Money Laundering Laws?
The cryptocurrency businesses that the Gazette notification has declared to fall under the money laundering laws are, “(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 or instruments 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.”
Modi Government: Cryptocurrency Businesses to Fall under Money Laundering Laws
Implications of This Legal Development by The Modi Government
A confusion exists as to whether trading in virtual digital assets would amount to money laundering. However, the effect of bringing cryptocurrency businesses under the PMLA Act is not such. It only means that the transactions occurring in cryptocurrency businesses would now be governed by the rules and norms of the money laundering laws. It is only a protective measure brought about by the Modi government to ensure that cryptocurrency businesses are fair and genuine.
Modi Government: Cryptocurrency Businesses to Fall under Money Laundering Laws
Taxation on Cryptocurrency Businesses
Apart from the fact that cryptocurrency businesses too would be governed by money laundering laws, as declared under the Union Budget 2023, cryptocurrency transactions would also be taxed at 30% without the application of any exemptions.
For more updates keep visiting our website www.topstoriesworld.com where we provide unbiased, true and top stories of the world.
