The Indian government’s recent move to bring the crypto sector under the Prevention of Money Laundering Act (PMLA) has sparked a discussion on whether this is a signal of greater regulation to come.
The move means that all Virtual Digital Assets businesses will have to perform and report KYT, transactions monitoring and reporting, address screening and reporting, SARs, and STRs.
While some in the industry are studying the implications of the new requirements, others have welcomed the government’s decision.
Nischal Shetty, the CEO of the WazirX exchange, has called it a “good step towards regulating the crypto industry in India.” Sumit Gupta, the CEO of CoinDCX exchange, has said, “Slowly but surely, we are moving towards a regulated crypto ecosystem!” And Gaurav Dahake, CEO of Bitbns exchange, is already complying with the norms of transaction monitoring, etc.
Crypto influencer Keyur Rohit believes that “this is the dawn of a new era for the crypto industry, and the future looks bright.” Meanwhile, a CoinSwitch spokesperson has assured users that the new rules are meant to prevent the misuse of crypto, such as money laundering, and will not affect the regular, KYC-verified conversion of crypto to INR on their platforms.
It’s worth noting that crypto regulations have become a focal point of India’s presidency of the G20 intergovernmental forum. Finance Minister Nirmala Sitharaman is seeking a globally coordinated effort to regulate the asset class. With this in mind, it’s possible that the Indian government’s move to bring the crypto sector under PMLA may be just the beginning of greater regulation to come.