Crypto under PMLA: Industry gives thumbs up, expects higher investor faith

business-standard.com:

The Centre's decision to bring virtual digital assets (VDAs) under the Prevention of Money Laundering Act (PMLA) will improve investors' confidence by bringing in more transparency, officials from several crypto firms told Business Standard.

On Tuesday, the Centre issued a notification to bring VDAs under the ambit of anti-money laundering law in India. The definition of "virtual assets" would include cryptocurrencies and non-fungible tokens (NFTs).

"This move not only helps safeguard the financial system's integrity but also inspires investor confidence in the crypto industry," said Edul Patel, chief executive officer (CEO) and co-founder of crypto firm Mudrex.

"This will strengthen our collective efforts to prevent VDAs from being misused by bad actors," Ashish Singhal, co-founder of crypto exchange CoinSwitch, tweeted.

According to the notification, the exchange between virtual digital assets and fiat currencies, the exchange between one or more forms of virtual digital assets and the transfer of digital assets will be covered under anti-money laundering law.

Resultingly, any financial wrongdoing involving cryptocurrency assets can now be investigated by the Enforcement Directorate (ED). The Financial Intelligence Unit – India (FIU-IND), under the Department of Revenue, Ministry of Finance, will be responsible for receiving, processing, analysing, and disseminating the information relating to suspect financial transactions.Also read: Cryptocurrency under PMLA: What changes for those investing in VDAs now?

"This move will enhance the legitimacy of the crypto industry in the eyes of the public," said Punit Agarwal, founder of KoinX.

"This will not only promote transparency but also aid in identifying and curbing the