NEW DELHI: The Ministry of Finance has issued a notification bringing crypto or virtual asset businesses under the purview of the black money prevention act. Government has said that through this, participation in transactions involving virtual digital assets will come under the Prevention of Money Laundering Act (PMLA). This is the latest step taken by government to tighten transactions related to digital assets.

India Blockchain Forum founder Sharat Chandra observed that this is a big step for cryptocurrencies. Crypto institutions will now have to meet the KYC, anti-money laundering regulations, and due diligence followed by banks and other financial institutions under the PMLA. Certainly, we are moving towards a regulated crypto ecosystem, Sumit Gupta, Co-Founder and CEO of CoinDCX Crypto responded. He also said that under PMLA, due diligence will be done by firms like CoinDCX.