ED attaches assets worth crores in crypto exchange fraud under PMLA
12 cryptocurrency platforms committed GST evasion totaling 87.60 crore. Almost 110.97 crore, including interest and penalties, have been recovered.
Highlights
- Amid fraud transactions, show cause notice was sent to WazirX
- Three people have been detained, and eight additional cases are still under review
- Cryptocurrencies are subject to 30 percent tax and still unregulated
The Enforcement Directorate had attached criminal proceeds of Rs 907 crore and prosecuted three people in relation to money laundering via cryptocurrency exchanges, the Union Finance Ministry informed the Lok Sabha on Monday.
Glance on the ongoing matter
On 14 December, Union Finance Minister, Pankaj Chaudhary made the following statement regarding the Money Laundering Act and stated, "Proceeds of Crime amounting to Rs 907.48 crore have been attached/seized." He continued to put focus on the arrest of three people and four prosecution complaints that were filed before the Special Court, PMLA(Prevention of Money Laundering Act) in these cases.
In the wake of the crypto fraud, Chaudhary also highlighted the GST avoidance of Rs 87.60 crore by 12 cryptocurrency exchanges. Although the recovery of 110.97 crores has been done, including interest and penalties, as informed by the minister to the parliament.
Assets worth 289.68 crores had been seized under Section 37A of the Foreign Exchange Management Act, 1999 (FEMA). Zanmai Laboratories Pvt Ltd, also known as WazirX, was held accountable for violations and was given a show-cause notice from FEMA for carrying out transactions involving crypto assets worth Rs. 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."
Experts take on the crypto operations
The Union Finance Minister indicated that crypto assets are unregulated in India and that the government does not register crypto exchanges. So, any legislation for regulation or prohibition can come into action with significant international cooperation in analysing risks and benefits.
"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.
