Assets of as much as Rs 907 crore have been attached as proceeds of crime by the Enforcement Directorate.
Additionally, the Parliament was informed that three people have been arrested for money laundering through crypto exchanges.
Money Laundering Through Cryptocurrency Worth Rs. 907 Crores
In cases involving money laundering by cryptocurrency exchanges, the Enforcement Directorate has attached criminal proceeds totaling Rs 907 crore and detained three people, Parliament was informed on Monday.
As per reports, Pankaj Chaudhary, a minister of state for finance, claimed that 12 cryptocurrency exchanges had engaged in Goods and Services Tax (GST) evasion totaling Rs. 87.60 crore.
A recovery of Rs. 110.97 crores has been made, including interest and penalty.
Eight cases are currently the subject of additional investigation, according to the minister, while four cases have been resolved through the payment of taxes, interest, and penalties.
Additionally, WazirX, a cryptocurrency exchange operated by Zanmai Labs Pvt Ltd, has had assets worth Rs 289.68 crore seized from it and its directors due to violations of the Foreign Exchange Management Act (FEMA), said Chaudhary.
ED Looking Into Several Cases of Cryptocurrency
The minister stated in a written response to a question in the Lok Sabha that the Directorate of Enforcement is looking into several cases of cryptocurrency fraud in which some crypto exchanges have also been discovered to be involved in money laundering.
As per Chaudhary, “As on December 14, 2022, proceeds of crime amounting to Rs 907.48 crore have been attached/seized, three persons have been arrested and four prosecution complaints have been filed before the Special Court, PMLA, in these cases.”
He also stated that due to their inherent lack of national boundaries, cryptocurrencies necessitate global cooperation to prevent regulatory arbitrage. Therefore, only with significant international cooperation on assessing the risks and benefits and developing a common taxonomy and standards can any legislation for regulation or for banning be effective.
In April, we reported to you the opinion of Union Minister of Finance Nirmala Sitharaman who said that amid the pioneering fintech revolution, the biggest risk of cryptocurrency could be money laundering and its use for financing terror.
