- 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.
Recommended Content
Editors’ Picks
Is Altcoin Season here as Bitcoin reaches a new all-time high?
Bitcoin reaches a new all-time high of $98,384 on Thursday, with altcoins following the suit. Reports highlight that the recent surge in altcoins was fueled by the victory of crypto-friendly candidate Donal Trump in the US presidential election.
Shanghai court confirms legal recognition of crypto ownership
A Shanghai court has confirmed that owning digital assets, including Bitcoin, is legal under Chinese law. Judge Sun Jie of the Shanghai Songjiang People’s Court shared this opinion through the WeChat account of the Shanghai High People’s Court.
BTC hits an all-time high above $97,850, inches away from the $100K mark
Bitcoin hit a new all-time high of $97,852 on Thursday, and the technical outlook suggests a possible continuation of the rally to $100,000. BTC futures have surged past the $100,000 price mark on Deribit, and Lookonchain data shows whales are accumulating.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: New high of $100K or correction to $78K?
Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.