India introduces new AML measures

The Indian government has brought the crypto sector under the Prevention of Money Laundering Act (PMLA). But is it a signal that more regulation is coming?

According to the Treasury Department, all Virtual Digital Assets companies will be subject to PMLA. This means that the companies should perform and report:

  1. Know Your Transactions (KYT)
  2. Monitor and report transactions
  3. Addressing screening and reporting
  4. Suspicious Activity Reports (SARs)
  5. Suspicious Transactions (STRs) Report

Experts encouraged by crypto regulations

India’s industry stakeholders have overwhelmingly welcomed the government’s decision. Nischal Shetty, the Chief Executive Officer of the WazirX exchange, called it a “good step towards regulation of the crypto industry in India”.

Sumit Gupta, the CEO of CoinDCX exchange, told Moneycontrol: “Slowly but surely we are moving towards a regulated crypto ecosystem! Entities like CoinDCX are now required by law to conduct due diligence and enhanced due diligence under the PMLA.”

Gaurav Dahake, CEO of Bitbns Exchange, told BeInCrypto that they are studying the implications of the new PMLA requirements. He says, “We’re already compliant with transaction monitoring standards, etc. What additional things would we need to figure out.”

Crypto influencer Keyur Rohit believes“This is the beginning of a new era for the crypto industry and the future looks bright.”

Crypto regulation has become a focal point of India’s presidency of the G20 Intergovernmental Forum. Finance Minister Nirmala Sitharaman is pushing for a globally coordinated effort to regulate the asset class.

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BeInCrypto has reached out to the company or individual involved in the story to get an official statement on recent developments, but it has not yet heard back.

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