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ED Seized 135 Crores in 7 Crypto Cases, No New Regulator for Crypto in India

During discussions in Lok Sabha on Monday, the Minister of State for Finance, Mr. Pankaj Chaudhary revealed the currency scenario of cryptocurrencies in India.

ED Attaches INR 135 Crores in 7 cases

Lok Sabha Member, Mr. Rakesh Singh asked about the use of cryptocurrency for money laundering in India.

In a written reply, Mr. Chaudhary said, “investigations conducted by Enforcement Directorate so far, revealed that some foreign nationals and their Indian associates have laundered the PoC (Proceeds of Crime) through cryptocurrency accounts at certain exchange platforms.”

India’s financial crime law enforcement agency, the Enforcement Directorate (ED) is probing seven crypto related cases of money laundering. 

So, far it has attached assets of around INR 135 crore.

He further revealed that in one such case an accused was arrested by ED in 2020 for facilitating the foreign-based accused companies to launder proceeds by converting the money generated out of crime into crypto and later transferring it abroad.

A prosecution complaint has been filed in this case before the Special Court, PMLA (Prevention of Money Laundering Act).

No Regulator for Crypto Investment

Another Parliamentarian, Mr. Rattan Lal Kataria asked if the Government has agreed to set up a regulatory authority for cryptocurrency investment.

Mr. Chaudhary replied that there is no such plan right now.

Government’s Policy on Checking Misleading Advertisements

Both Members of Parliament further discussed Government’s policy to check the attempts to mislead the youth through exaggerated promises and non-transparent advertisements. 

The Minister of Finance (State) revealed that both the Government and the Reserve Bank of India (RBI) have been cautioning users regularly about the potential economic, financial, operational, legal, customer protection and security-related risks associated with cryptocurrency. 

The second phase of Budget Session 2022 has begun. With the recent changes in the stances of the UAE, the United States and the geopolitical situation in Europe, the Government of India is expected to take another step towards regulatory clarity on cryptocurrencies. Maybe it will be announced in the ongoing session.

News recommendation: Major Update From India’s Finance Ministry on Crypto

Cover Photo Source: Wikimedia

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