India Not Considering Legislation to Regulate Crypto Sales, Purchases: Minister

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated:

August 7, 2024 04:52 EDT

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India currently has no plans to introduce legislation regulating crypto sales and purchases, a Finance Ministry minister said.

In a written response to the Parliament’s lower house, Minister Pankaj Chaudhary explained that the Financial Intelligence Unit has the power over certain aspects like money laundering prevention and terrorism financing. This unit can label certain digital asset service providers as official Reporting Entities.

India Pushes for Global Crypto Standards, Targets Foreign Exchanges

He also highlighted that during India’s G20 leadership last year, a joint framework for regulating cryptocurrencies was adopted. This framework outlines an approach to managing crypto-related risks, especially in developing countries. All nations, including India, are encouraged to assess their specific crypto challenges and work with global organizations to develop appropriate regulations.

India’s finance ministry began taking a stricter stance on cryptocurrency exchanges last year. It issued legal notices to several major foreign crypto platforms. These included Binance, Kucoin, and Huobi. The notices claimed these platforms were operating illegally in India by failing to comply with anti-money laundering regulations.

Binance Faces $2.25M AML Fine Amid Plans to Reenter India

Binance was exploring a return to the Indian market in April. As part of the deal, India’s financial intelligence unit hit the exchange with a $2.25m fine for violating anti-money laundering regulations. This is the largest penalty ever levied on a cryptocurrency company in India for such offenses.

Additionally, Binance is reportedly dealing with goods and service tax (GST) issues in India. This week, a state zonal unit of the Directorate General of GST Intelligence (DGGI) sent a show cause notice to the exchange, demanding $86m under GST.