Hey everyone Happy Friday to all and this is lucky Ali. here I have a major update to share with you. So the update is you have to report a transaction of 50k or more and cryptocurrency is included here. So this new rule gives us an idea of what is going to happen in the future regarding crypto. Let's talk about the Prevention of Money Laundering Act this law was introduced so that financial institutions or companies report transactions completely and this is most important, especially with international transactions. We saw a major change in this march 2023 and this major change was including crypto under this act. So now crypto exchanges have to report transactions such as crypto to fiat currency, crypto to crypto, or storing cryptocurrency.
Not only this but FIU guidelines were published and according to these guidelines, Indian exchanges need to hire a principal officer or designated director who is responsible for tracking suspicious activity and notifying it. Also, they are responsible for reporting international transactions which is 5 lacs or above. So Indian exchanges registered with FIU (Financial Intelligence Unit). So Complete reporting is being done such as the KYC status of the users, what they are trading, and more.
So these things already going on but there is a new change this week. And new amendment rules are introduced. In the above paragraph, I have said that there is a principal office or designated director whose job is to report 5 lac or above transactions. This amount has changed and now the amount is 50k INR. So now they will report 50k or above transactions as well. Now there is confusion that if you are sending crypto Indian exchanges to international exchanges then it will count in international transactions or not.
Unfortunately, there is no clarification regarding this but according to tax experts, more guidelines will released in the coming weeks. Crypto exchanges do not want to make any mistakes because the history is not good with the government. You can see the controversies that happened in the past between the Indian exchanges and the government. Because in the past, RBI banned cryptocurrency. So Indian crypto exchanges saving their business and they are keeping records of every single transaction until the guidelines are released.
People using banking for a long time but now crypto is easy and convenient for them. The transaction is instant in crypto internationally and there are many more benefits which is the reason the government added this to the PMLA. So it will not be easy for exchanges to run crypto exchanges in India. So as a crypto user, you need to focus on record keeping because this is now very important for you. The future is not good for the crypto users in India because the government is not in the mood to support the Indian crypto community.
These rules are introduced to track the transactions so that they can earn taxes but there are no guidelines for the safety of crypto users because crypto regulation is not there. The government earns tax without regulation so why should they pay efforts to do regulations? Now the time has come that we should raise our voice against such a government that if there is no regulation, there is no tax. And tax should be reduced. Anyway, I hope you liked this report please share this information on social media with the #savecrypto tag. Do a comment below have a good day ahead.
Thank you, everyone.
Lucky Ali