In recent weeks, seven crypto-based money laundering incidents have been disclosed, posing a severe threat to India’s crypto economy. The gravity of these cybercrimes was revealed to members of the Indian Parliament’s lower house (Lok Sabha) by the Union Minister of State for Finance Pankaj Chaudhary.
The Directorate of Enforcement (ED) stated in the inquiry under the Prevention of Money Laundering Act (PMLA) that the unlawful profits totaled Rs 135 crore, or $18 million.
According to Chaudhary, reports collected from law enforcement agencies (LEAs) in connection with the laundering show the investigated matter.
Furthermore, he stated that the ED’s investigations so far have revealed that some foreign nationals and their Indian connections have laundered the PoC through cryptocurrency accounts on various exchange platforms.
In a similar crypto-money laundering case, the agency bank had detained one suspect in 2020. In particular, in the year 2021, more than 9.6 million Indian crypto users visited crypto fraud websites.
Crypto-related crimes were at an all-time high in 2021, according to Chainalysis. In 2020, DeFi platforms lost $162 million in cryptocurrency. Cybercriminals also utilized deFi protocols to launder money.
In addition, the cryptocurrency sector in India has been a major topic of debate. Following a series of crypto bans and regulations, the Union Finance Minister proposed a 30% tax on cryptocurrency in the Budget for 2022.
The Reserve Bank of India (RBI) recently expressed severe worries about cryptocurrency usage in India, announcing plans to create a legal framework for crypto payments. Furthermore, the Reserve Bank of India (RBI) has severe worries and issues with cryptocurrency use, believing it could jeopardize India’s financial stability.