Cryptocurrency under PMLA: What changes for those investing in VDAs now?

Cryptocurrency news: If found guilty under PMLA, the person who committed money laundering can be awarded rigorous imprisonment for a minimum of three years up to seven years, with a fine

The Centre on Tuesday brought cryptocurrencies under the ambit of the Prevention of Money Laundering Act (PMLA). According to the government notification, the exchange between virtual digital assets and fiat currencies, the exchange between one or more forms of virtual digital assets and the transfer of digital assets will be covered under money laundering laws.

The definition of "virtual assets" would include cryptocurrencies and non-fungible tokens.

Broadly, this means that any financial wrongdoing involving cryptocurrency assets can now be investigated by the Enforcement Directorate (ED).

What is India's money laundering law, PMLA?

The Prevention of Money Laundering Act, 2022 (PMLA)