The Indian Finance Ministry has issued a notice stating that anti-money laundering regulations will now apply to crypto trading, safekeeping, and associated financial services, per a Bloomberg report.
These new regulations introduced by the Indian government aim to increase oversight of digital assets and combat money laundering in the cryptocurrency sector. The implementation is consistent with a global trend that requires digital asset platforms to adhere to anti-money laundering standards similar to those followed by regulated entities like banks or stockbrokers comparable.
Last year, India implemented stricter tax rules on the crypto sector, including a trading tax. This move, alongside a global decline in digital assets, resulted in a decrease in domestic trading volumes.
Crypto firms such as CoinSwitch Kuber and WazirX are now currently under investigation by India's Enforcement Directorate, which is responsible for investigating money laundering and foreign exchange violation cases.