Last Updated: December 20, 2022, 10:34 am IST
The written reply further apprised that policy related to crypto assets and its ecosystem is with the Union Ministry of Finance.
In a written reply to the query, the Minister of State for Finance said Crypto assets are borderless and hence require international collaboration to prevent regulatory arbitrage.
In the preceding Winter session of Parliament, a Lok Sabha member enquired about the status of the Cryptocurrency bill with the Finance Ministry. In a written reply to the query, Minister of State for Finance Pankaj Chaudhary said that crypto assets are borderless and hence require international collaboration to prevent regulatory arbitrage. He added that any legislation on the matter can be effective only with ‘significant’ international collaboration. The process can be functional only when international-level stakeholders evaluate the risk and benefits and mark the evolution of common taxonomy and standards.
The written reply further apprised that policy related to crypto assets and its ecosystem is with the Union Ministry of Finance. In another question in the Lok Sabha, the Minister of State for Finance Pankaj Chaudhary acknowledged the members that the government does not register any crypto exchanges. On the issue of money laundering, the government has tasked the Directorate of Enforcement to investigate several cases of crypto fraud, wherein a few crypto exchanges have also been found involved in cases of money laundering.
Further, the Directorate of Enforcement is taking necessary steps under the Prevention of Money Laundering Act, 2002 (PMLA). As of December 14, 2022, the investigating agency has attached and seized Rs. 907.48 and three persons have been arrested so far with four prosecution complaints filed before the special court, and PMLA.
The Directorate of Enforcement has seized assets worth Rs 289.68 crore under section 37A of the Foreign Exchange Management Act, 1999 (FEMA). Further, a showcase notice is issued 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.
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