Crypto Wrongdoings Can Now Attract Money Laundering Charges

Crypto Wrongdoings Can Now Attract Money Laundering Charges

Crypto Money Laundering,



‘Crypto trading’ and
Crypto investment’ have been associated with scams and frauds right from the
start, and recently inflicted by fraudulent exchanges or intermediaries. Still,
across the world, there are no proper regulations to safeguard the interest of investors.
It is like gambling, if you lose you lose, and if someone cheats you, you cannot
even report it to the concerned authorities. Well, because, they have not been
legalized in many countries including India. However, in the past two years, the
government of India has started taking action to prevent fraud and scams in the
crypto space. And so, cryptocurrencies have now been brought under the Money
Laundering Act – which means that any fraudulent activity or wrongdoing in the
crypto space can result in charges of money laundering.

 

The Indian government has done a lot in the
past one or two years to control the crypto world.

 

Right from the
beginning, Crypto has been a
controversial topic in India. The RBI has always been against crypto. The
central bank’s stance on RBI never changed over the years right from the days
when they wanted cryptos to be banned. And so while it neither got banned or
legalized, a bill titled Crypto Bill was introduced in the Lok Sabha…

 

And then there was the
beginning of the Taxation w.r.t Cryptos

 

Now according to the
new crypto taxation rules, even if you fall within the taxable limit of below
Rs. 2,50,000, you will still be charged 30% tax (plus cess and surcharges) –
similar to how it is done for horse racing and other speculative trading or
gambling.

 

Besides, you cannot carry forward your crypto
losses.

 

For example, if you
have incurred a loss of Rs. 2,00,000 in this financial year, you do not have to
pay taxes, but you cannot carry forward this loss to the next year. Also, you
cannot set off your crypto losses. This means that if you have incurred a loss
of Rs. 2,00,000 in Bitcoin and a profit of Rs. 10,00,000 from another
investment, you will still have to pay taxes on the profit of Rs. 10,00,000.
This is because cryptocurrencies are categorized as speculative gaming, rather
than being recognized as a separate asset class.

 

There is also TDS (Tax
Deducted at Source) on cryptocurrency transactions.

 

If you conduct trades
worth more than Rs. 10,000 in a year or receive digital virtual assets as gifts
worth more than Rs. 10,000, then in such cases, a 1% TDS will be deducted. The
main purpose of deducting TDS is to keep track of every transaction. This TDS
rule came into effect from July 1, 2022.

 

Now,

 

Cryptocurrencies have come under the purview of
the Prevention of Money Laundering Act, and there are several regulations that
have been imposed on crypto.

 

Cryptocurrency
exchanges and intermediaries are now required to conduct KYC (Know Your
Customer) verification for their users and report any suspicious activity to
the Financial Intelligence Unit of India. Additionally, every reporting entity
must keep a record of each transaction.

 

It is evident that the
government is trying to keep a close eye on the crypto world and its trades
through these new measures. Although the government’s intention may not be
indirectly against crypto, it is clear that they are imposing standard
regulations on it.

 

For the past two years,
crypto has faced restrictions and various types of regulations in India, and
yet there is no clarity on its legalization. This is why professional investors
have always maintained their distance from crypto…Because they would rather
invest in safe instruments and invest in asset classes and the stock market.

 

No wonder. The stock market
is a haven for investment and even while banks like SVB and Signature can doom,
your money with a reputed stock broker
under the purview of SEBI is always safe and secure…

 

Besides, regarding
earning 40% to 50% in crypto the stock market isn’t behind too…Investors here
can earn as much as 30 to 40% in 3 days. Just look at Rajiv Jain, who earned
3,100 crore in three days by buying during Adani’s crisis.

 

So, if you are looking
to invest in Stock Markets in equity, derivatives, commodities, currency or IPO
look for a new-age broker that is experienced..someone like Angel One.

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