HENCY R SHAH AND ASSOCIATES

Crypto under PMLA: New rules of the game The central government has tightened regulatory control over virtual digital assets, more commonly known as cryptocurrencies. According to a gazette notification, the government has mandated that a host of trading activities in such assets will now come under the ambit of the Prevention of Money Laundering Act (PMLA). In other words, going ahead, trading between cryptocurrencies and fiat currencies or among cryptocurrencies and other such services can be investigated by agencies such as the Enforcement Directorate (ED) and the Income Tax department. The move should be seen in light of the government’s efforts to bring cryptocurrencies under greater regulation. In April 2022, for instance, the government introduced a 30% income tax on gains made from cryptocurrencies. Later in July 2022, the government brought in rules regarding 1% tax deducted at source on cryptocurrency. Broadly speaking, greater regulation of cryptocurrencies is advisable. ...

G20, IMF, FSB to work on policy formulation of crypto assets The Indian Administration has proposed a joint specialized paper by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to "integrate the macroeconomic and administrative points of view of crypto-resources". These associations are supposed to introduce their joint paper during the fourth G20 Money Clergymen and National Bank Lead representatives Meet, planned next October. This would assist in the detailing of a planned and far reaching strategy with drawing closer to crypto resources, when numerous nations including India didn't have an administrative system for crypto resources. A few conversations on the issue are normal over the span of G20 gatherings this year, which will help "construct informed banter inside the G20 gatherings and lead to the detailing of composed and extensive strategy approach," as per a Press Data Department discharge. The IMF-JSB paper is "expe...