India has imposed money laundering provisions on the cryptocurrency sector, the latest step by the government to strengthen supervision of digital assets.
He Finance Minister said in a notice on Tuesday that anti-money laundering legislation has been applied to crypto trading, custody and related operations financial services.
India's move aligns with a global trend of requiring digital asset platforms to โfollow anti-money actionsโ.money laundering similar standards to those followed by other regulated entities such as banks or stockbrokers,โ said Jaideep Reddy, a lawyer with the law firm Trilegal.
Last year, India implemented stricter tax rules in the cryptocurrency sector, including imposing a trade levy. Those moves, as well as a global rout in digital assets, caused a drop in domestic trading volumes.
The latest anti-money laundering measure "is concerning, as implementation of the required compliance measures is likely to require time and resources," Reddy said.
