The latest step taken by the Indian government to strengthen control over digital assets is the imposition of anti-money laundering regulations on the cryptocurrency industry.
The trading, storage, and related financial services are now subject to anti-money laundering laws, according to a notice released by the Finance Ministry on Tuesday.
India’s action fits with a global trend that requires digital asset platforms “to follow anti-money laundering norms comparable to those adopted by other regulated businesses like banks or stock brokers,” according to Jaideep Reddy, counsel at law firm Trilegal.India implemented stricter tax regulations on the cryptocurrency industry last year, including levying a fee on trade.
Domestic trade volumes fell as a result of these actions as well as a global collapse in digital assets.The latest anti-money laundering measure “is concerning as implementing the requisite compliance measures is likely to require time and resources,” Reddy said.
