The Minister stated, any legislation for regulation or for banning can be effective only with significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards.

The Minister stated that the Directorate of Enforcement is investigating several cases related to crypto currency frauds wherein a few crypto exchanges have also been found involved in money laundering. Necessary action as per provisions of Prevention of MonEY Laundering Act, 2002 (PMLA) has been taken by the Directorate of Enforcement.

Crypto Assets are by definition borderless and require international collaboration to prevent regulatory arbitrage, stated by the Union Minister of State for Finance, Pankaj Chaudhary, in a written reply to a question in Lok Sabha today.

Therefore, the Minister stated, any legislation for regulation or for banning can be effective only with significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards.

The Minister stated that the Directorate of Enforcement is investigating several cases related to crypto currency frauds wherein a few crypto exchanges have also been found involved in money laundering. Necessary action as per provisions of Prevention of MonEY Laundering Act, 2002 (PMLA) has been taken by the Directorate of Enforcement. As on 31.01.2023, proceeds of crime amounting to Rs. 936 crore have been attached/seized/freezed, 05 persons have been arrested and 06 prosecution complaints (PCs) including 01 supplementary PC have been filed before the Special Court, PMLA in these cases.

Further, the Minister stated, under Foreign Exchange Management Act, 1999 (FEMA) assets amounting to Rs. 289.28 crore have been seized under section 37A of FEMA and 01 Show Cause Notice to cryptocurrency exchange Zanmai Labs Pvt Ltd, known as WazirX and its directors under FEMA for transactions involving cryptocurrencies work Rs. 2,790 crore has also been issued.