The government’s big decision on cryptocurrency in the country, money laundering rules will now apply. Money laundering rules will apply to crypto transactions in the country

India’s money laundering laws will now also apply to businesses in cryptocurrencies. According to the report of Reuters, this was stated in the notification issued by the government on March 7. The notification states that exchanges between virtual digital assets and fiat currency, exchanges between one or more virtual digital assets and transfers of digital assets will be covered by the Money Laundering Act.

What will be covered?

The notification also states that holding or using virtual digital assets and participation in financial services related to offer and sale of virtual digital assets will also be covered.

According to reports, bills and regulations related to cryptocurrencies in India are yet to be finalised. However, the Reserve Bank of India has warned people several times about their use. RBI has said that cryptocurrencies should be banned, as they are like a fake scheme. Once the money laundering rules on cryptocurrencies are implemented, the administration will be able to monitor the transfer of these assets outside the country’s borders.

According to Reuters, the Narendra Modi-led government, which is also chairing the G-20 forum, is constantly trying to build a global consensus to address the risks posed by cryptocurrencies.

What is cryptocurrency?

Cryptocurrency is nothing different, but a digital currency. Cryptography secures these digital currencies, hence the name cryptocurrencies. Talking about cryptography, it is the storage and transmission of data in such a way that only those for whom it is intended can read it. Data is protected from theft by cryptography. It can also be used for user authentication.

Now let’s understand cryptocurrency transactions. Digital currency transactions are done through wallets, just like bank accounts. But in that case the wallet is in control.