Cryptocurrency and Money Laundering — Prelims Questions
Which of the following statements regarding cryptocurrency and money laundering in India is/are correct? 1. The Prevention of Money-Laundering Act (PMLA), 2002, explicitly mentions 'cryptocurrency' as a scheduled offence. 2. The Finance Act, 2022, introduced a 1% TDS on Virtual Digital Asset (VDA) transactions, which aids in creating an audit trail. 3. The Reserve Bank of India (RBI) has recognized cryptocurrencies as legal tender in India. 4. Cryptocurrency mixers are services that enhance the traceability of illicit funds on the blockchain.
Which of the following are considered 'Virtual Asset Service Providers' (VASPs) under the FATF guidelines and India's PMLA notification? 1. Cryptocurrency exchanges 2. Providers of cryptocurrency wallets 3. Entities facilitating transfer of virtual assets 4. Central Bank Digital Currency (CBDC) operators
Consider the following statements regarding the 'Travel Rule' in the context of cryptocurrency regulation: 1. It is a recommendation by the Financial Action Task Force (FATF). 2. It mandates Virtual Asset Service Providers (VASPs) to share originator and beneficiary information for transactions above a certain threshold. 3. Its primary aim is to enhance the anonymity of cryptocurrency transactions. Which of the statements given above is/are correct?
Which of the following Indian legal frameworks can be invoked in cases involving cryptocurrency money laundering? 1. Prevention of Money-Laundering Act (PMLA), 2002 2. Foreign Exchange Management Act (FEMA), 1999 3. Information Technology Act, 2000 4. Indian Penal Code (IPC), 1860
Which of the following is NOT a common method used by criminals to launder money using cryptocurrencies?