Minister of State for Finance Pankaj Chaudhary told Lok Sabha that crypto assets are by definition borderless and require international collaboration to prevent regulatory arbitrage.
“Therefore, any legislation on the subject can be effective only with significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards,” Chaudhary said in a written reply to a question about the Crypto Bill.
The minister further said that at present, policy related to crypto assets and related ecosystem is with the Union Ministry of Finance.
In another question, the minister further replied that the government does not register crypto exchanges.
“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,” said Chaudhary.
Indian Government On Money Laundering
In reply to another question, he further said that the Directorate of Enforcement is investigating several cases related to crypto frauds, wherein a few crypto exchanges have also been found involved in money laundering. Necessary action as per provisions of the Prevention of Money Laundering Act, 2002 (PMLA) has been taken by the Directorate of Enforcement.
As on December 14, 2022, proceeds of crime amounting to Rs. 907.48 crore have been attached/seized, and three persons have been arrested and four prosecution complaints have been filed before the Special Court, PMLA, in these cases.
“Further, under the Foreign Exchange Management Act, 1999 (FEMA), assets amounting to Rs. 289.68 crore have been seized under section 37A of FEMA and one Show Cause Notice to crypto exchange Zanmai Labs Pvt Ltd, known as WazirX, and its director under FEMA for transactions involving crypto assets worth Rs. 2,790.74 crore has also been issued,” Chaudhary said.
He further said that few cases of evasion of Goods and Services Tax (GST) by crypto exchanges have been detected by Central GST formations.
Earlier On November 11, 2022, during the ninth meeting of the India-US Economic and Financial Partnership, Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman, and her US counterpart, Secretary of the Treasury, Janet L. Yellen, discussed cryptocurrency regulations.
Both Reserve Bank of India (RBI ) Governor Shaktikanta Das and US Federal Reserve Chairman Jerome Powell were present at the meeting, which took place in New Delhi. Yellen was making her first trip to India as Secretary of the Treasury.
