Virtual Digital Assets

FIG Paper No. 62 (VDA Series 12): Regulating Virtual Digital Assets: Global Trends and India’s Emergent Supervisory Architecture

Summary: India’s approach to regulating virtual digital assets (VDA) is evolving from fragmented enforcement towards a structured supervisory framework. This aligns with global trends in the US, UK and EU, of adopting activity-based regimes focused on governance, disclosure, consumer protection and stablecoin oversight. In India, parliamentary consultations, enhanced tax reporting, and increased enforcement actions signal a maturing regulatory outlook. The FIG Paper provides guidance to VDA businesses on navigating India’s current supervisory and enforcement developments whilst preparing for future regulation.

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FIG Paper (No. 43 – VDA Series 5) India’s Stablecoin Industry – Reacting to Global Regulations & Market Trends

Stablecoins, which are virtual digital assets (“VDA”) typically pegged to stable assets like fiat currencies, are being recognised as the cornerstone of digital finance revolution, delivering a blend of traditional currency stability and decentralised innovation. As their global adoption accelerates — from everyday retail transactions/ cross-border remittances to institutional treasury operations — governments worldwide are realising that clear, forward-thinking regulation can foster innovation and help their economies stay ahead of the pack.

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FIG Paper (No. 33 – Series 2): Compulsory Registration of Off-shore Virtual Digital Asset Service Providers with FIU-IND?

Recently, the Financial Intelligence Unit – India (“FIU-Ind”) has issued show-cause notices to several offshore Virtual Digital Asset Service Providers (“VDASP”) for non-compliance with  provisions of the Prevention of Money Laundering Act, 2002 (“PMLA”) and for non-registration with the FIU-Ind, post amendment to PMLA on march 07, 2023, while catering to the Indian customers and operating in the Indian market.

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Gaming Law

The Ministry of Finance has issued a notification dated March 07, 2023 (“Notification”), classifying entities that engage in specific activities (see below) related to Virtual Digital Assets (“VDA(s)”) in the course of business, as “persons carrying on designated business or profession” Therefore, such entities are now considered “Reporting Entities” under the Prevention of Money Laundering Act, 2002 and the corresponding rules (“PMLA”).

Continue Reading PMLA Concerns for the Skill Gaming Sector?