Intel agencies seek law on crypto deals

Intel agencies seek law on crypto deals

Subject: Security

Context:

Investigation and intelligence agencies of the government are pressing the Centre to distinctly list crypto currency exchanges under the existing regulatory mechanism, thus making it mandatory for the exchanges to proactively share information regarding suspicious transactions with the police or law enforcement authorities.

• The official added that though the law enforcement agencies and the police are authorised to seek information under Section 91 of the Code of Criminal Procedure (CrPC), on many occasions in the absence of a First Information Report (FIR), crucial information cannot be sought from these exchanges.
• The agencies are seeking powers akin to that available under the Prevention of Money Laundering Act (PMLA) to get information from the exchanges.

Current Status

• The Reserve Bank of India (RBI) has recommended a ban on cryptocurrencies citing “destabilising effects” for the country’s monetary and fiscal health
• On March 4, 2020, the Supreme Court struck down a 2018 circular of the RBI, which sought to prevent banks and institutions from dealing in “virtual currencies”.

PMLA and ED already covered