If you also trade in crypto, then you may have to raid ED and Income Tax

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Crypto Regulations: The Central Government has been strict about cryptocurrencies from the beginning. Now the laws regarding this are being made more stringent. In this sequence, the government has brought many activities of trading in such assets under the purview of the Prevention of Money Laundering Act. This means that now such activities will be under the radar of government agencies.

Now this law will work

According to a latest gazette notification, many activities of trading in virtual digital assets, commonly known as cryptocurrencies, are now under the purview of the Prevention of Money Laundering Act (PMLA). Will come In simple words, in the coming time, the Enforcement Directorate ie Enforcement Directorate (ED) and Income Tax Department (Income Tax Department) can invite law enforcement agencies to be done in cryptocurrency.

This strictness has already been done

This is not the first time that the government has taken strict action regarding cryptocurrency. Even before this, the government has adopted a strict attitude regarding such currency many times on different occasions. Last year, in the budget, the government had imposed a huge income tax (Income Tax On Crypto) of 30 percent on the earnings from the transactions of cryptocurrency. After this, in July last year, the government had also implemented 01 percent TDS (TDS On Crypto) on cryptocurrency.

Notification came this week

Talking about the latest changes, the government notified it on 07 March. After this, transfer of cryptocurrency, exchange and all virtual digital assets have come under the ambit of PMLA. As per the notification, entities dealing in virtual digital assets have now become reporting entities. Now such bodies will have to follow the reporting standards and KYC provisions on the lines of banks and payment system operators. It is clear that the government wants to increase its control over digital assets in the country.

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Welcomed by the crypto industry

Talking about the cryptocurrency industry, this step of the government is being welcomed. Experts believe that the new rules will be helpful in preventing the misuse of crypto assets, especially money laundering. Crypto exchanges say that the latest government notification will bring transparency in the crypto ecosystem. Along with this, there will be uniformity among all virtual digital assets platforms.

read this also: Income tax department alerted, finish this work by March 15 or else you will be fined

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