Parliament was informed on Monday that the Enforcement Directorate is investigating several cases involving cryptocurrency/virtual digital currency frauds, in which a few crypto exchanges were also found to be involved in money laundering.
In a written reply in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said that virtual digital assets have the potential for criminal misuse. He said adding further that the “Directorate of Enforcement is investigating several cases related to cryptocurrency/ virtual digital currency frauds wherein a few crypto exchanges have also been found involved in money laundering.”
Necessary action as per provisions of the Prevention of Money Laundering Act, 2002 (PMLA) has been taken by the Directorate of Enforcement (ED), he added.
MoS Pankaj Chaudhary said that “As on January 31, 2023, proceeds of crime amounting to Rs 936.89 crore have been attached/seized/freezed, five persons have been arrested and six Prosecution Complaints (PCs), including one supplementary PC, have been filed before the Special Court, PMLA in these cases,”
Furthermore, assets worth Rs 289.28 crore have been seized under the Foreign Exchange Management Act of 1999 (FEMA). According to the minister, one show cause notice has been issued under FEMA to cryptocurrency exchange Zanmai Labs Pvt Ltd, also known as WazirX, and its Directors for transactions involving cryptocurrencies worth Rs 2,790.74 crore.
Crypto assets are currently unregulated in India. Currently, under extant laws against fraud and crime, crypto-related frauds are been dealt with.
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