As PMLA tightens grip on crypto, here’s how other nations regulate VDAs

The Ministry of Finance’s March 7 decision to place virtual digital assets (VDAs), which include cryptocurrencies and non-fungible tokens (NFTs), under the purview of the Prevention of Money Laundering Act (PMLA) will introduce a layer of compliance for firms involved in the cryptocurrency industry.

Crypto entities will be obligated to record transaction and client data, monitor compliance, and report suspicious activities while empowering the Enforcement Directorate (ED) to investigate suspected crypto-related financial wrongdoings. Moreover, last year, Finance Minister Nirmala Sitharaman introduced a flat 30 per cent tax on profits from transferring crypto assets and NFTs.