Why is it in the news?
The FATF report highlighted India’s actions against offshore crypto platforms.
Focus on money laundering and terror financing risks.
Category: Economy / Internal Security
Important Points:
● oVASPs operate outside user’s country jurisdiction
● Provide services like exchange, transfer and wallet storage
● Exploit regulatory arbitrage and weak AML norms
● India mandates registration under FIU-IND
● Covered under PMLA, 2002
● 30% tax on virtual digital assets (Finance Act 2022)
● 1% TDS on VDA transactions
● Virtual Asset Lab being set up for monitoring
● Sahyog portal used to block non-compliant platforms
● Enhances tracking of suspicious financial activities