India’s money laundering laws will now also apply to trading in cryptocurrencies. According to the report, this has been said in the notification issued by the government on March 7.
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India’s money laundering laws will now also apply to trading in cryptocurrencies. According to the Reuters report, this has been said in the notification issued by the government on March 7. The notification states that the exchange between virtual digital assets and fiat currency, exchange between one or more forms of virtual digital assets and transfer of digital assets will be covered under the laws of money laundering.
What will be covered?
The notification further states that holding or using virtual digital assets and participation in financial services related to the offer and sale of virtual digital assets will also be covered under this.
According to the report, the bill and rules related to cryptocurrency have still not been finalized in India. However, the Reserve Bank of India has warned people several times about their use. RBI has said that cryptocurrencies should be banned, as they are similar to a fake scheme. Once the money laundering rule is implemented on cryptocurrencies, the administration will be able to monitor the transfer of these assets outside the country’s borders.
According to Reuters, the government under the leadership of Narendra Modi, which is also leading the G-20 forum, is constantly trying to build a global consensus to deal with the risks posed by cryptocurrencies.
What is cryptocurrency?
Cryptocurrency is not something different, but a digital currency. Cryptography secures these digital currencies, hence they are named cryptocurrency. Talking about cryptography, it is to store and transmit data in such a way that only those people for whom it is made can read it. Data is protected from theft by cryptography. It can also be used for user authentication.
Now let’s understand the transaction in cryptocurrency. Transaction of digital currency is done through wallet, as is done in bank account. However, in that case the wallet remains in control.