The government of India has imposed money laundering provisions on the cryptocurrency sector, the latest step in tightening oversight of digital assets.
According to a notice issued by the Finance Ministry on Tuesday, anti-money laundering legislation has been applied to crypto trading, safekeeping, and related financial services.
The Indian move is consistent with a global trend of requiring digital-asset platforms “to follow anti-money laundering standards similar to those followed by other regulated entities such as banks or stock brokers,” according to Jaideep Reddy, counsel at law firm Trilegal.
Last year India applied more stringent tax rules on the crypto sector, including applying a levy on trading. Those moves, as well as a global rout in digital assets, caused a plunge in domestic trading volumes.
The latest anti-money laundering measure “is concerning as implementing the requisite compliance measures is likely to require time and resources,” Reddy said.