ED seizes assets worth Rs 907 crore from crypto exchanges under PMLA
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New Delhi, Dec 21: The Union Finance Ministry informed the Lok Sabha on Monday that the Enforcement Directorate had attached the proceeds of crime worth Rs 907 crore and charged three people in connection with money laundering by crypto exchanges.
Concerning the Money Laundering Act, Union Finance Minister, Pankaj Chaudhary, stated on December 14 that "proceeds of crime amounting to Rs 907.48 crore have been attached/seized, three persons have been arrested, and four prosecution complaints have been filed before the Special Court, PMLA (Prevention of Money Laundering Act) in these cases."
Furthermore, Chaudhary emphasized the GST evasion of Rs 87.60 crore by 12 crypto exchanges. However, the minister informed parliament that the recovery was worth Rs 110.97 crore, including interest and penalties. Chaudhary added, under the Foreign Exchange Management Act, 1999 (FEMA), assets totaling Rs 289.68 crores had been seized under Section 37A of FEMA. He said, Zanmai Labs Pvt Ltd, known as WazirX, was held liable for violations, thus show cause notice was sent to the company under FEMA for performing transactions involving crypto assets valued at 2,790.74 crores. "Further investigation is underway in eight cases, and four cases are closed on payment of tax, interest, and penalty, mentioned the minister." Amid the crypto fraud, the Union Finance Minister stated that crypto assets in India are unregulated, and the government does not register crypto exchanges. As a result, any legislation for regulation or prohibition can be effective only with significant international collaboration on assessing risks and benefits, as well as the evolution of a common taxonomy and standards."
"Currently, policy related to crypto assets and related ecosystems lies with the Ministry of Finance," the minister replied to the query of Biju Janata Dal MP, Bhartruhari Mahtab on the regulation of cryptocurrency and crypto tokens.