MUMBAI, March 8 (Reuters) - India's money laundering
laws will apply to trade in cryptocurrencies, the federal
government said in a notification dated March 7.
The exchange between virtual digital assets and fiat
currencies, the exchange between one or more forms of virtual
digital assets and the transfer of digital assets will be
covered under money laundering laws, the notification said.
The safekeeping or administration of virtual digital assets
and the participation in financial services related to the offer
and sale of virtual digital assets will also be covered, the
notification added.
India is yet to finalise legislation and regulations
surrounding cryptocurrencies even as the country's central bank
has cautioned against their use multiple times.
The Reserve Bank of India has said that cryptocurrencies
should be banned as they are akin to a Ponzi scheme.
Extending India's money laundering rules to cryptocurrencies
will give authorities greater authority in monitoring the
transfer of these assets beyond the country's borders.
The Narendra Modi-led administration, as part of its
leadership of the G-20 forum, has been pushing for a wider
global agreement on dealing with the risks brought on by
cryptocurrencies.
(Reporting by Nikunj Ohri; writing by Ira Dugal; Editing by
Savio D'Souza)
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