Indian Government Answers Questions About Crypto Legalization, Fraud Prevention

Indian Government Answers Questions About Crypto Legalization, Fraud Prevention

The Indian government has responded to parliamentary questions about the legalization of cryptocurrency and the steps it has taken to prevent crypto-related fraud. “Crypto assets are currently unregulated in India. Frauds relating to crypto are dealt with under extant laws against fraud and cybercrime,” the Minister of State for the Ministry of Finance told parliament. Indian Ministry of Finance on Crypto Legalization

The Indian government answered two sets of crypto-related questions in Lok Sabha, the lower house of India’s parliament, on Monday.

The first set asks the Minister of Finance “whether the government is planning to legalize cryptocurrency in the country” and what “impact cryptocurrency will have on the common people and especially youth.”

Shri Pankaj Chaudhary, Minister of State in the Ministry of Finance, reiterated his previous reply to parliament. “Crypto assets are currently unregulated in India. Crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage,” he said, elaborating: Any legislation for regulation or for banning can be effective only with significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards.

The minister also stated that India’s central bank, the Reserve Bank of India (RBI), “has been cautioning users, holders and traders of virtual currencies (VCs) that dealing in VCs is associated with potential economic, financial, operational, legal, customer protection and security related risks.”

While the Indian government is still working on a cryptocurrency bill, crypto income is already taxed at 30% in India and a 1% tax deducted at source (TDS) is levied on crypto transactions. Last month, the government brought crypto transactions under the Prevention of Money Laundering Act, 2002 (PMLA). Crypto Fraud Prevention

The finance minister was asked in Lok Sabha about whether crypto-related frauds have increased in the last few years, what steps the government has taken to prevent such frauds, and whether all crypto exchanges operating in the country are in compliance with international financial regulations.

“Crypto assets are currently unregulated in India. Frauds relating to crypto are dealt with under extant laws against fraud and cybercrime,” Minister Chaudhary replied, noting that states and Union Territories (UTs) are responsible for investigating and prosecuting such crimes. He further explained that India’s Ministry of Home Affairs has launched a portal for reporting crypto-related frauds to the Cyber & Information Security Division.

“The Enforcement Directorate [ED] is investigating several cases under the provisions of Prevention of Money Laundering Act, 2002 (PMLA) and Foreign Exchange Management Act, 1999 (FEMA), related to crypto assets,” he further said, adding: As on date, proceeds of crime amounting to Rs. 953.70 crores [$116.40 million] have been attached/seized/freezed, 5 persons have been arrested and 6 prosecution complaints (PCs) including 1 supplementary PC have been filed before the Special Court, PMLA in these cases.

“Further, under Foreign Exchange Management Act, 1999 (FEMA) assets amounting to Rs. 289.28 crores have been seized under section 37A of FEMA and 1 Show Cause Notice to crypto asset exchange Zanmai Labs Private Limited known as Wazirx and its directors under FEMA for transactions involving crypto assets worth Rs. 2,790.74 crores have also been issued,” the minister noted. Tags in this story India, india crypto, india cryptocurrency regulation, indian cryptocurrency, indian government, indian parliament, indian parliament crypto, indian parliament cryptocurrency., lok sabha

Do you think the Indian government will soon regulate crypto? Let us know in the comments section below. Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Central Bank of Sri Lanka Warns of "Significant Risks" in Using and Investing in Crypto REGULATION | 7 hours ago US Justice Department Seizes Cryptocurrency Worth $112 Million in "Pig Butchering" Crackdown REGULATION | 1 day ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleCentral Bank of Sri Lanka Warns of ‘Significant Risks’ in Using and Investing in Crypto Next articleHidden Treasure: Every Modern Copy of macOS Contains a Copy of Bitcoin’s White Paper Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItCentral Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year

The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.NFT Sales Volume Saw a Small Uptick This Week — Moonbirds, Mutant Apes Take Top Sales Fidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand" Interest in Real Estate Investments in Spain Grew 400%, With Some Using Crypto and Stocks as Payment Method Ethereum Foundation"s Financial Report Discloses It Holds $1.6 Billion in Assets, 80.5% Held in Ether