In a written reply in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said virtual digital assets can be misused criminally.

Enforcement Directorate is looking into numerous cases linked to cryptocurrency/virtual digital currency scams wherein a few crypto exchanges have also been found to be participating in money laundering, Parliament was informed on Monday.

In a written reply in the Lok Sabha, the Minister of State for Finance, Pankaj Chaudhary, remarked that virtual digital assets have the potential for criminal misuse.

“The Directorate of Enforcement is investigating a number of cases about crypto currency/ virtual digital currency frauds where a few crypto exchanges have also been identified as taking part in money laundering,” he said.

The Directorate of Enforcement (ED) has taken the necessary action as per the rules of Prevention of Money Laundering Act, 2002 (PMLA).

“By January 31, 2023, proceeds of crime valued at Rs 936.89 crore have been seized/frozen/attached, five people have been arrested and six Prosecution Complaints (PCs), including one supplementary PC have been filed before the Special Court, PMLA in these cases,” the minister declared.

Moreover, under Foreign Exchange Management Act, 1999 (FEMA) assets worth Rs 289.28 crore have been taken.

The minister said a show cause notice to cryptocurrency exchange Zanmai Labs Pvt Ltd, known as WazirX, and its Directors under FEMA for transactions involving cryptocurrencies with a value of Rs 2,790.74 crore has also been issued.

Crypto assets are currently unregulated in India. Frauds pertaining to crypto are addressed under existing laws against fraud and cybercrime.