In India, cryptocurrencies have gone unregulated for a very long
time. While the issues relating to taxation of cryptocurrency has
been relatively easier to address, the concerns arising from the
anonymous and decentralised character of cryptocurrencies have been
difficult to tackle. The untraceability and anonymity offered by
cryptocurrencies also make it ideal for unlawful activities such as
money laundering and terrorist financing.
India, in line with other countries, has updated several laws
mandating reporting of virtual digital assets to account for the
changing dynamics of the financial environment. Additionally, the
purview of the Prevention of Money Laundering Act, 2002
("PMLA") has been expanded to include
transactions pertaining to virtual currency assets such as
different exchanges, transfers, and administrative actions
connected to virtual digital assets. However, due to the
information being scattered, there remains a lot of ambiguity and
lack of
