The Indian government has recently brought the crypto sector under the Prevention of Money Laundering Act (PMLA), which has sparked speculation about the future of cryptocurrency regulation in India.
Under the new guidelines, all Virtual Digital Assets businesses must conduct and report various activities, such as Know Your Transactions (KYT), transaction monitoring and reporting, address screening and reporting, and Suspicious Activities Reports (SARs) and Suspicious Transactions Report (STRs).
While the move has been met with mixed reactions, many industry stakeholders have welcomed the government’s decision to regulate the crypto industry in India.
Nischal Shetty, CEO of the WazirX exchange, has called it a “good step,” while Sumit Gupta, CEO of CoinDCX exchange, sees it as a move towards a “regulated crypto ecosystem.”
However, there are concerns about the implications of the new PMLA requirements, particularly for smaller businesses. Gaurav Dahake, CEO of Bitbns exchange, says they are studying the new rules to determine their impact on their operations.
Despite the uncertainty, some crypto influencers, such as Keyur Rohit, believe that the new regulations signal the dawn of a new era for the crypto industry in India, and the future looks bright.
Crypto regulation has also become a focus of India’s presidency of the G20 intergovernmental forum. Finance Minister Nirmala Sitharaman is seeking a coordinated effort to regulate the asset class globally.
