WHILE WE AWAIT regulations specifically applicable to virtual digital assets (VDAs), there have been peripheral changes in the regulatory environment. First, there was a new regime to levy tax on income from VDAs; then came reporting requirements under the Companies Act; and now, VDAs have been brought under the ambit of the Prevention of Money Laundering Act (PMLA).
PMLA permits the government to prescribe measures to prevent money laundering. It provides for stringent measures including confiscation of property. The enforcement directorate (ED) frequently takes action under PMLA, including related to virtual asset service providers (VASPs).
The Ministry of Finance
