After imposing a 30% tax on gains generated from cryptocurrencies last year, the Indian government has now brought virtual digital assets like cryptocurrencies under the Prevention of money laundering act. What is PMLAct? Why is India tightening oversight on digital assets? What is the motive? Will this affect the crypto market? Will meme-coins like Dogecoin, and Big Eyes Coin face any problems? These are the very few questions that crypto enthusiasts keep asking experts to find answers to.
What is PMLA?
PMLA is the short form for the Prevention of Money Laundering Act that was enacted by the Indian government in 2002. According to this law whosoever directly or indirectly attempts to indulge in or assist or be part of any process or activity connected with the proceeds of crime and projecting it as untainted property shall be guilty of the offence.
Why Is India Tightening The Oversight On Digital Assets?
In the last year, the Indian Enforcement Directorate and Income Tax departments investigated more than 10 crypto exchanges for allegedly assisting foreign firms in laundering money. Nearly 936 crore rupees related to cryptocurrencies have been seized or attached under PMLA. Hence, bringing Cryptocurrencies under the money laundering act will aid the investigating agencies in taking action against crypto companies.
What is India’s Motive?
The new notification manifests India’s intention to regulate cryptocurrencies rather than ban them. In the latest G20 meeting that happened in India, the finance minister Nirmala Sitharaman requested the member states to share their concerns regarding the risks of cryptocurrencies while discussing the common framework to regulate them. It clearly shows that India is trying to embrace the inevitable economic change coming in the form of cryptocurrencies by regulating them. It also shows how fast governments around the world are realizing the importance of having perfect regulations in place for cryptocurrencies and digital assets.
Will This Affect Crypto Market?
According to a research report by Esya Centre, since the Indian government announced a 30% tax on cryptocurrencies, nearly 1.7 million Indian users who own virtual digital assets have switched from Indian exchanges to international exchanges.
But unlike this, the Indian government’s latest move to bring Cryptocurrencies under PMLA will definitely create a positive atmosphere for the crypto market.
Cryptocurrencies have so long been accused of a lack of transparency and accountability. But India’s new move will change the status quo in the traditional crypto protocol.
With this new inclusion, cryptocurrencies will now be considered reporting entities which means the financial misconduct involving cryptocurrencies can be investigated by the Enforcement Directorate in India.
Hence, crypto dealers, exchangers, and intermediaries will now be required to perform KYC(Know your customer or client) and maintain the records of clients and users of the platform. They will also be instructed to inform the government of any suspicious activity.
This new move will make cryptocurrencies a regulated industry in India. This will make the crypto sector more transparent, and credible. Since a company or individual committing the offence of money laundering shall be liable to rigorous imprisonment of 3 to 5 years and a fine of up to 5 lakh rupees, investors will have a fear of messing up with cryptocurrencies.
Dogecoin
The advent of meme-coins into the crypto market has made it a fun-filled profitable business. Dogecoin is the first and foremost cryptocurrency that introduced the concept of meme coins in the crypto market. Over the past decade, Dogecoin has grown to become the number one meme-coin in the market by market capitalization. The coin has been enjoying the support of one of the world’s richest men, Elon musk. He had influenced Dogecoin’s market many times in the past. Even though Dogecoin offers the utmost secrecy and privacy to its investors, it won’t have any problem as long as it complies with the laws in India.
Big Eyes Coin
Big Eyes Coin is one of the meme-coins that has been registering massive progress in its presale stage. The presale was rolled out in 2022 and has been growing since then. The Big Eyes Coin team has dedicated a platform for NFTs called sushi crew where users can buy unique digital assets. It also announced that it would spend 5% of its total supply to save the oceans in the world. Even though big eyes coin ensured the fastest transaction, ultimate secrecy, and transparency to its customer, it promised not to impose any tax or fee on its investors. It uses a native token called BIG that is being sold in its presale. In the 12th stage of the presale, a single unit of the BIG token costs only $0.00049. To boost the presale the Big Eyes Coin already released loot boxes that could return a furr-tune of BIG tokens worth up to 1 million dollars. It recently announced a vault pin for a BIG win. Investors who spend more than 100 dollars on buying BIG tokens will be given free loot boxes if they use vault pin 819 during purchase.
Since Big Eyes is in its presale stage it won’t be affected by India’s decision on bringing cryptocurrencies under the money laundering act. Though the coin will be asked to comply with the laws in India after it is launched in the market and listed in exchanges.
Learn More About Big Eyes Coin Here:
Presale: https://buy.bigeyes.space/
Website: https://bigeyes.space/
Telegram: https://t.me/BIGEYESOFFICIAL
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Source: https://www.thecoinrepublic.com/2023/03/13/india-brings-crypto-under-money-laundering-law-what-lies-ahead-for-meme-coins-like-dogecoin-and-big-eyes-coin/