REGULATORY ENFORCEMENT IN INDIA'S VIRTUAL ASSET SECTOR

March 7, 2023, is a watershed moment in the landscape of Indian financial regulation. A groundbreaking notification by the Ministry of Finance had brought Virtual Digital Asset activities within the fold of the Prevention of Money Laundering Act, 2002. This strategic step marked the end of the era of "regulatory ambiguity" for the crypto sector in India. By bringing into place a stringent, activity-based Anti-Money Laundering and Counter-Financing of Terrorism regime, the Indian government has given a clear signal that crypto might not be banned, but it must operate in a transparent, accountable, and thoroughly monitored legal ecosystem.