India imposes AML legislation to crypto in a bid to increase regulatory oversight


Share:
  • India has tightened its oversight of digital assets, imposing money laundering provisions on cryptocurrencies. 
  • The Finance Ministry issued a notice on Tuesday, announcing the imposition of the anti-money laundering legislation on crypto trading. 
  • India’s move aligns with that of regulators worldwide, increasing oversight and regulation of virtual assets. 

India has aligned its treatment of cryptocurrencies with that of the United States and regulators worldwide. The South Asian republic has imposed money laundering provisions on cryptocurrencies to tighten its oversight on virtual assets.

Also read: Silk Road Bitcoins worth $1 billion move to Coinbase, another sell-off on the horizon?

Indian Finance Ministry announces anti-money laundering legislation to crypto

Cryptocurrencies like Bitcoin, Ethereum, altcoins and stablecoins have seen an increase in regulatory scrutiny and oversight after the Terra-LUNA implosion, the FTX exchange collapse and lately, the Silvergate bank crisis. The tumultuous events of 2022 have garnered reactions from global lawmakers and regulators, and resulted in a regulatory crackdown in most countries. 

The Indian Finance Ministry issued a notice on Tuesday, announcing the imposition of the anti-money laundering legislation to crypto trading, safekeeping and related financial services. India’s move is a step in the direction to tighten the South Asian country’s oversight of digital assets. 

India’s steps to apply anti-money laundering policies to cryptocurrencies are aligned with moves made by regulated entities like banks and stock-brokers worldwide. In 2022, India imposed stringent tax rules on cryptocurrencies, including a levy on crypto trading. 

Experts at Bloomberg believe India’s move could cause a plunge in domestic crypto trading volumes. Jaideep Reddy, counsel at law firm Trilegal, was quoted as saying, “[The latest anti-money laundering measure] is concerning as implementing the requisite compliance measures is likely to require time and resources.”

Interestingly, despite US financial regulator Securities and Exchange Commission’s (SEC) crackdown on crypto firms, stablecoins and virtual assets, the global cryptocurrency market capitalization is above $1.05 Trillion. It remains to be seen whether increasing regulatory oversight will trigger a decline in the global crypto market cap. 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended Content

Editors’ Picks

Week Ahead: Altcoin plays for traders as Bitcoin crosses $42,000

Week Ahead: Altcoin plays for traders as Bitcoin crosses $42,000

Bitcoin price hit $40,000 over the weekend as investors anticipate a spot BTC ETF approval in January. Bitcoin trades around $42,000 and shows no signs of stopping. This article will focus on what to expect this week and the outlook for BTC and if the fourth cycle is any different.

More Bitcoin News

Crypto exchanges serving Indian residents to comply with Anti-Money Laundering guidelines: Indian Parliament

Crypto exchanges serving Indian residents to comply with Anti-Money Laundering guidelines: Indian Parliament

Crypto exchanges serving Indian residents to face action if not compliant with Anti-Money Laundering and Countering of Financial Terrorism guidelines.The process of registering offshore exchanges, Virtual Digital Asset service providers has been initiated.

More Cryptocurrencies News

Dogecoin breaks key $0.088 barrier ahead of tenth birthday, 87% DOGE holders at profit

Dogecoin breaks key $0.088 barrier ahead of tenth birthday, 87% DOGE holders at profit

As Dogecoin (DOGE) approaches its tenth anniversary on Wednesday, the Shiba-Inu-themed meme cryptocurrency has surpassed a crucial resistance level at $0.088076, reaching the highest level since mid-April.

More Dogecoin News

Bitcoin price could rally to $45,000 ahead of BTC halving event in April 2024

Bitcoin price could rally to $45,000 ahead of BTC halving event in April 2024

Bitcoin price crossed the $41,000 mark on Binance, in its ongoing uptrend. BTC price rally is likely driven by the anticipation of Spot Bitcoin ETF approval. There are more catalysts driving BTC price gains in the current cycle.

More Bitcoin News

Analyzing potential $30k corrections ahead of BTC ETF approval

Analyzing potential $30k corrections ahead of BTC ETF approval

Bitcoin has slowed down its 2023 bull rally as it approaches the $37,000 level. After three weeks of consolidating around this level, BTC shows no directional bias whatsoever. Some investors speculate this could be an upward-sloping accumulation that leads to a $40,000 rally.

Read full analysis

BTC

ETH

XRP