Since the notification of 7 March 2023, what must a virtual digital asset (VDA) service provider do under India's anti-money-laundering law?

Register with FIU-IND and follow PMLA obligations, even if it operates from offshore. The 2023 notification brought VDA service providers under the Prevention of Money Laundering Act. They must register with FIU-IND, and offshore providers serving Indian users are covered too. There is no RBI banking licence or SEBI listing approval for crypto. The Income Tax Department deals with tax, not PMLA registration. Read more in the full Article.

Consider the following statements about the taxation of virtual digital assets (VDAs) in India: 1. Income from transfer of a VDA is taxed at a flat 30% under Section 115BBH. 2. A loss on one VDA can be set off against the gain on another VDA. 3. Section 194S requires 1% TDS on the consideration paid for a VDA transfer. Which of the statements given above is/are correct?

1 and 3 only. Section 115BBH imposes a 30% tax on VDA transfer income. Section 194S adds 1% TDS on the consideration. Statement 2 is wrong. Only the acquisition cost is deductible, and VDA losses cannot be set off or carried forward. Read more in the full Article.

Assertion (A): The Supreme Court's 2020 judgment in IAMAI v RBI did not make cryptocurrency legal tender in India. Reason (R): The Court set aside the RBI circular of 6 April 2018 because it failed the test of proportionality. Which one of the following is correct?

Both A and R are true, but R is not the correct explanation of A. Both statements are true. The Court struck down the RBI circular, which had barred regulated entities from dealing in virtual currencies, on proportionality grounds. But striking down a ban does not declare crypto legal tender. The reason explains why the ban fell, not why crypto stayed unrecognised as currency. Read more in the full Article.

Which statement about India's Digital Rupee (e-rupee) is correct?

It is a central bank digital currency issued by the RBI and is excluded from the VDA definition. The e-rupee is a CBDC issued by the RBI. Its pilots began in November and December 2022. CBDCs are excluded from the VDA definition, so the VDA tax rules do not apply to them. It is not a private token, an exchange product, or a stablecoin. Read more in the full Article.

Consider the following statements about the October 2026 Binance hack: 1. The FBI linked it to North Korea’s TraderTraitor group. 2. Binance’s finding that a compromised engineer’s laptop was the entry point is a completed forensic conclusion. 3. It was larger than the 2025 Bybit hack, which the FBI also attributed to North Korea. How many of the statements given above are correct?

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