India’s crypto sector brought under anti-money laundering law

The Indian government has subjected all trade in cryptocurrencies to the 2002 Prevention of Money Laundering Act (PMLA).

In a notification issued Wednesday, the Finance Ministry said the exchange and transfer of virtual digital assets will come under the laws of the PMLA.

According to the act, financial institutions must keep records of all transactions and provide this information when sought by the authorities.

The notification said the PMLA also applies to financial services connected to an issuer’s offer and sale of virtual assets.

A “virtual digital asset” has been termed as any information, code, number or token that is generated through cryptographic means or otherwise, by whatever name called, providing a digital representation of value exchanged with or without consideration, according to the notification.

The government has warned investors against participating in transactions involving virtual digital assets.

It has been trying to regulate the cryptocurrency market in the country.

India’s Enforcement Directorate, which is responsible for enforcing economic laws and fighting economic crime, is already investigating money??????? laundering and forex violation cases against many crypto companies.