India has imposed anti-money laundering provisions on the cryptocurrency sector, the latest move by the government to tighten oversight of digital assets.
The Finance Ministry said in a notice on Tuesday that the Anti-Money Laundering Act has been implemented crypto tradingSafe keeping and related financial services.
India’s move aligns with a global trend of requiring digital-asset platforms “to adhere to the same anti-money laundering standards as other regulated entities such as banks or stockbrokers,” said Jaideep Reddy, counsel at law firm Trilegal. .
Last year, India imposed more stringent tax regulations on the crypto sector, including levies on trading. Those moves, as well as a global decline in digital assets, have led to a decline in domestic trading volumes.
The latest anti-money laundering measures “are likely to require time and resources to implement the requisite compliance measures,” Reddy said.
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