On March 7, The Gazette of India published a notification from the Ministry of Finance, subjecting a range of transactions with crypto to the Prevention of Money-Laundering Act 2002 — namely the exchange, transfers, safekeeping and administration of virtual assets. Financial services related to an issuer’s offer and sale of virtual assets also fall under the PML Act.

The notification doesn’t provide many details, but the PML Act obliges financial institutions to maintain a record of all transactions for the last ten years, furnish these records to the officials if demanded, and verify the identity of all the clients.

Written right on time when regulators all over the globe are tightening the AML standards for crypto, the notification will nevertheless complicate the life of crypto companies in India.

(By DAVID ATTLEE)