The Enforcement Directorate of India has attached the proceeds of a crime worth INR 936 crore ($11.3 million) and arrested five people in a cryptocurrency fraud case. In a written reply to a question in the Lok Sabha, the Minister of State for Finance, Pankaj Chaudhary, stated that the directorate is investigating several cases related to cryptocurrency frauds and a few exchanges have been found involved in money laundering.
Assets Seized Under FEMA
Under the Foreign Exchange Management Act, 1999 (FEMA), assets worth INR 289.28 crore ($3.5 million) have been seized and one show cause notice has been issued to the cryptocurrency exchange, WazirX, and its directors for transactions involving cryptocurrencies worth INR 2,790 crore ($34 million).
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International Collaboration Needed
When asked about the government’s plans for regulating virtual digital assets in the country, the minister said that crypto assets require international collaboration to prevent regulatory arbitrage. He added that any legislation for regulation or banning can be effective only with significant international collaboration to evaluate the risks and benefits, and to evolve common taxonomy and standards.
The Indian government’s stance on cryptocurrency has been a topic of much discussion and speculation in recent years. Despite the recent crackdown on cryptocurrency fraud, the country has yet to establish a clear regulatory framework for virtual digital assets. As the use of cryptocurrencies continues to grow globally, it is important for the Indian government to find a balanced approach that takes into account the potential benefits and risks of these assets. The need for international collaboration in regulating cryptocurrencies highlights the complexity of the issue and the need for a coordinated effort among countries to address it effectively.
