The Enforcement Directorate (ED) Monday informed Parliament that proceeds of crime worth assets of ₹907 crore have been attached and three persons arrested in investigations into money laundering by crypto exchanges.

In addition to that, Minister of State for Finance Pankaj Chaudhary told parliamentarians that Central GST officers have detected Goods and Services Tax (GST) evasion worth ₹87.60 crore by 12 crypto exchanges. He also stated that ₹110.97 crore recovery, which includes interest and penalty, too has been made.

The minister through a written reply to a question in the Lok Sabha, said the ED is investigating several cases related to crypto frauds which also involved a few crypto exchanges that are suspected to be indulging in money laundering.

“As on December 14, proceeds of crime amounting to ₹907.48 crore have been attached/seized, three persons have been arrested and four prosecution complaints have been filed before the Special Court, PMLA, in these cases,” Chaudhary said.

According to Chaudhary, further probe is on in eight cases and four cases were closed on payment of tax along with interest and penalty by entities under glare.

Of the total assets seized in cases of crypto exchanges, ₹289.68 crore belongs to Zanmai Labs Pvt Ltd, known as WazirX, and its Directors and the attachments have been done on charges of violation of the provisions of the Foreign Exchange Management Act (FEMA), Chaudhary told MPs.

Crypto assets currently are unregulated but taxed at 30 per cent.

“Crypto assets by definition are borderless and require international collaboration to prevent regulatory arbitrage. Therefore, any legislation for regulation or for banning can be effective only with significant international collaboration on evaluation of the risks and benefits and evolution of common taxonomy and standards,” Chaudhary added.

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