What does this regulation cover?

In its gazette notification, the Finance Ministry specified the nature of transactions, among other things, that would fall under this anti-money laundering law. 


This includes:

  • The exchange between virtual digital assets (VDAs) and fiat currencies.
  • Exchange between one or more forms of virtual digital assets.
  • Transfer of virtual digital assets.

Other activities that fall under the umbrella of this money laundering law are:

  • The safekeeping or administration of virtual digital assets 
  • Participation in financial services related to the offer and sale of virtual digital assets. 

This essentially means that exchanges, custodians, and wallet providers, among other crypto-related entities, will now fall under the PMLA. The notification also mentioned that the government will now consider all entities dealing in VDA as reporting entities.

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