The Central Government has not agreed to set up a regulatory authority for investment in cryptocurrency in India, Minister of State for Finance Pankaj Chaudhary said in a written reply to a query in the Parliament today (March 14, 2022).
Chaudhary was responding to a query on “whether the Government has agreed to set up a regulatory authority for investment in cryptocurrency.”
On the question of whether the Government is making any policy to check misleading cryptocurrency advertisements, Chaudhary said, “The Government and the Reserve Bank of India (RBI) to protect the interest of consumer/investor, have been cautioning users, holders and traders of cryptocurrency, from time to time, about the potential economic, financial, operational, legal consumer protection and security related risks associated in dealing with cryptocurrency.”
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Crypto use in money laundering
While responding to another question on the use of crypto assets in money laundering activities, the Minister of State said that reports have been received from Law Enforcement Agencies (LEAs) in connection with usage of cryptocurrency by cyber criminals.
“Directorate of Enforcement (ED) is investigating 07 cases under PMLA, 2002 in which cryptocurrency has been used for Money Laundering. Cases investigated by ED under PMLA, reveals that accused have laundered Proceeds of Crime (PoC) through cryptocurrency,” he said.
According to the Government, proceeds of crime amounting to Rs 135 crore under PMLA has been attached by the Enforcement Directorate (ED) till now.
“Investigations conducted by Enforcement Directorate so far, revealed that some foreign nationals and their Indian associates have laundered the PoC through cryptocurrency accounts at certain exchange platforms,” Chaudhary said.
“In one of such case an accused has been arrested by ED in the year 2020 for facilitating the foreign related accused companies to launder the PoC by converting money generated out of crime into cryptocurrency and thereafter transfer to foreign countries. Prosecution Complaint has been filed in this case before the Special Court, PMLA. So far, ED has attached PoC amounting to Rs. 135 Crore (approx.) under PMLA in above mentioned cases,” he added.
