Cryptocurrency transactions to come under money laundering provisions: Govt

Cryptocurrency transactions to come under money laundering provisions: Govt

Any participation in transactions involving virtual digital assets or cryptocurrency, would come under the Prevention of Money Laundering Act or PMLA, the Centre has said.

New Delhi, March 8 (IANS) Any participation in transactions involving virtual digital assets or cryptocurrency, would come under the Prevention of Money Laundering Act or PMLA, the Centre has said.

This was announced through a gazette notification, issued on March 7.

The step has been taken to tighten misuse of digital assets.

Government in the gazette has warned investors against "participation in and provision of financial services related to an issuer's offer and sale of a virtual digital asset".

"Exchange and transfer of virtual digital assets would also fall under PMLA laws," the notification further said.

According to the Income tax act, a virtual digital asset refers to any information, code, number, or token generated through cryptographic means.

(This news story has been published from IANS syndicated feed and may not have been edited by Loktej team.)