Cryptocurrency assets have grown consistently over the past few years, and after the Covid epidemic, they sharply grew. India leads the globe in crypto ownership with an estimated 98 million owners. As a result, it is critical to control their transactions because there is a chance that they could be abused, which would be detrimental to the economy. Like illicit funds, crypto assets have the potential to harm the economy.It will be feasible to significantly reduce money laundering through crypto exchange transactions by including crypto trading platforms under the PMLA. Additionally, it would ensure that the exchanges keep thorough records that can be given to the enforcement agencies. After a global agreement on crypto trades on exchanges is signed, these records may be shared with authorities in other nations. If cryptocurrency assets are used to launder money, severe fines, prison sentences of up to seven years, and asset seizures and attachments are all possible punishments. 
    Source: MintThis might discourage the trading of digital assets. Because of the significant regulatory cost placed on the middlemen, cryptocurrency trading as a whole may be dissuaded. Trading platforms will need to closely monitor all transactions and alert the appropriate enforcement agencies to any questionable activity. As a result of several recent government actions, trading volumes have already decreased. Most players could struggle to continue playing when faced with such strict requirements and harsh punishments for infractions.
    Transactions that were illegal have previously been found. Recently, the government informed the Lok Sabha that some cryptocurrency exchanges had been discovered to be involved in money laundering and that as of January 31, assets worth Rs 936 crore had been seized. 
    Due to their anonymity and quick cross-border transactions, cryptocurrencies can be utilised improperly in a variety of ways. Some have attempted to control them, while still others are deciding how to handle them. Several nations have outright banned them. It’s conceivable that this circumstance will be abused.

    Source: India Today Regulatory framework with widely acknowledged standards and processes is required. The government’s current strategy appears to be to control the market rather than outright outlaw it. A ban might drive the industry underground.

    Share your views in the comment section below.

    Share.

    Comments are closed.