Crypto-related crimes amounted to ₹953.7 cr so far: Govt tells Lok Sabha

The finance minister told Parliament about the public notices circulated by the RBI in this regard, stating that the Centre as well as RBI, have often cautioned people regarding cryptocurrencies

Crimes related to cryptocurrencies amounted to ₹953.70 crore so far, union finance minister Nirmala Sitharaman told Parliament on Monday.

The financial action force task (FATF) has adopted several methods to prevent growing illegitimate crypto-related activities. (iStock image)

Replying to a query by Dravida Munnetra Kazhagam (DMK) MP Velusamy P, Sitharaman said the financial action force task (FATF) has made several amendments to mitigate the growing use of virtual assets for money laundering and terrorist financing.

The DMK MP had raised concerns on the growing use of criminal activities using virtual assets, asking how the government was detecting and monitoring such activities.

The finance minister told Parliament about the public notices circulated by the Reserve Bank of India (RBI) in this regard, stating that the Centre as well as RBI, have often cautioned people regarding cryptocurrencies.

“RBI has been cautioning users, holders and traders of Virtual Currencies (VCs) vide public notices from 2013, that dealing in VCs is associated with potential economic, financial, operational, legal, customer protection and security related risks,” replied Sitharaman.

“RBI has also advised its regulated entities to continue to carry out customer due diligence processes for transactions in VCs, in line with regulations governing standards for Know Your Customer (KYC), Anti-Money Laundering (AML), Combating of Financing of Terrorism (CFT), obligations under Prevention of Money Laundering Act (PMLA), 2002, etc,” added Sitharaman.

Crime amounting to ₹953.70 crore including the arrest of five persons and six prosecution complaints have been filed to date before the special court, under the Prevention of Money Laundering Act, 2002 (PMLA).

“Enforcement Directorate is investigating several cases under the provisions of PMLA and foreign exchange management act, 1999 (FEMA) related to cryptocurrencies,” the finance minister added.