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Under PMLA, Rs 936 Cr Related To Crypto Freezed By ED Till 31 Jan: Centre Tells Parl

Crypto Assets are by definition borderless and require international collaboration to prevent regulatory arbitrage, said Chaudhary in a written reply to a question in Lok Sabha

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Enforcement Directorate

Under the Prevention of Money Laundering Act (PMLA), Rs. 936 crore related to cryptocurrency is seized by Enforcement Directorate (ED) as on 31 January 2023, said MoS Finance Pankaj Chaudhary on Monday.

He mentioned that five persons have been arrested and six prosecution complaints (PCs) including one supplementary PC have been filed before the Special Court, PMLA in these cases.

Crypto Assets are by definition borderless and require international collaboration to prevent regulatory arbitrage, said Chaudhary in a written reply to a question in Lok Sabha.

He stated,  "Any legislation for regulation or for banning can be effective only with significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards."

The minister stated that ED is investigating several cases related to cryptocurrency frauds wherein a few crypto exchanges have also been found involved in money laundering. 

Further, Chaudhary stated, "Under Foreign Exchange Management Act, 1999 (FEMA) assets amounting to Rs 289.28 crore have been seized under section 37A of FEMA and 01 show cause notice to cryptocurrency exchange Zanmai Labs, known as WazirX and its directors under FEMA for transactions involving cryptocurrencies work Rs 2,790 crore has also been issued."

He said that RBI has been cautioning users, holders and traders of Virtual Currencies (VCs) vide public notices on 24 December 2013, 01 February 2017 and 05 December 2017 that dealing in VCs is associated with potential economic, financial, operational, legal, customer protection and security related risks. 

Giving more information, he stated that the central bank has also advised its regulated entities to continue to carry out customer due diligence processes for transactions in VCs.


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pmla Centre government parliament cryptocurrency