People familiar with the matter: Anti-money laundering rules for Indian crypto companies are about to be formalized

Indian cryptocurrency exchanges are in talks with the government to formalize rules for reporting and monitoring illegal transactions, including money laundering, according to three government executives. The Financial Intelligence Unit has shared a set of proposed rules with cryptocurrency exchanges in India, where the government has imposed capital gains tax and transaction tax on virtual digital assets in FY22. According to three executives, the FIU's recommended rules include: proper KYC checks on customers, transaction monitoring, training of employees to prevent money laundering, product risk reviews, and compliance with the Financial Action Task Force's travel rules. The travel rules, first introduced in the United States, require financial intermediaries to share information with each other during money transfers for inspection purposes.