Guwahati: The Indian government has taken a major step to regulate the cryptocurrency market in the country, bringing it under the ambit of the Prevention of Money Laundering Act (PMLA).
In a notification, the Ministry of Finance has warned investors against participation in transactions involving virtual digital assets.
The ministry has also declared that the exchange and transfer of virtual digital assets would be subject to the laws of the PMLA.
Also Read: 12 things that you can buy with Crypto-currencies
The notification defines a ‘virtual digital asset’ as any information, code, number or token that is generated through cryptographic means or otherwise.
The move by India is in line with global trends, wherein digital-asset platforms are expected to follow anti-money laundering standards similar to those followed by other regulated entities such as banks or stock brokers.
Also Read: G20: India urges IMF and FSB for joint paper on crypto assets
The Enforcement Directorate, which is responsible for investigating money laundering and forex violation cases, is already probing several crypto companies including exchanges CoinSwitch Kuber and WazirX.
With this latest move, the government seeks to tighten the oversight of digital assets and ensure that cryptocurrency transactions are done in a safe and secure way.