Anti money laundering rules are applied on Crypto in India

India has been one of the countries that is part of the discussion time to time because of many news updates. Sometimes it's tax, banking services, and now it's AML rules. As per the latest update, Indian government has introduced the AML applicability for cryptocurrencies. This means all the Indian cryptocurrency exchanges have got the authority to report any such transactions. They are like a gatekeeper who are going to control such suspicious transactions. If they observe that something is phishy then they're supposed to take the action by reporting it to the government.

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I see this as a positive movement and even many people in cryptocurrency space share the same thought. Now the government has given the exchange a power that earlier banks had. This can be considered as a good move towards the regulation. The finance minister has been talking about the regulation for quite sometime and probably they are going to do it this way where things are implemented in parts.

The government has imposed anti-money laundering provisions on cryptocurrencies or virtual assets as it looks to tighten oversight of digital assets. In a gazette notification, the Finance Ministry said the anti-money laundering legislation has been applied to crypto trading, safekeeping and related financial services.

Although there is no change on the other things here like taxation. Exchanges are still struggling with withdrawal for the Fiat currency as they're not getting banking support. This is one of the pain area where they need support and I hope something happens that can make things easy for the customers. This make difficult for Indian users to deal with Crypto because they aren't getting instant withdrawal from the exchange.

There is no clarity that howmuch time it's going to take to get the fix done but this has been going on for quite sometime. Let's hope that things get improved because now government is earning taxes but they are not doing anything to make it easy for people. It's really not a good thing where government is not ready to provide a favourable environment to users but they are ready to take the higher cut as part of the taxation.

There are multiple things to get addressed and I hope that attention is paid by the relevant authorities. Even exchanges try thier best to stay compliant so that there is no issue from the government side.

Thank you so much
Stay Safe

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