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Trading volumes in exchanges have risen sharply after the Ministry of Finance brought crypto assets under the Prevention of Money Laundering Act last week. As per the data shared by Crebaco, a crypto market analysis firm, trading volumes for the top Indian exchanges, WaxirX, Coindcx, and Zebpay rose by 125.28 per cent, 131.38 per cent and 108.26 per cent, respectively in the week after the PMLA Act was passed. Bitbns, however, saw its volumes shrink by 23.22 per cent.
Read Editorial.New money laundering routes should be plugged
On March 7, the Centre issued a notification bringing transactions involving crypto assets under the Prevention of Money Laundering Act. It laid out the nature of transactions to be covered under PMLA. These are: Exchange between virtual digital assets and fiat currencies; exchange between one or more forms of virtual digital assets; transfer of virtual digital assets; safekeeping or administration of virtual digital assets or instruments enabling control over virtual digital assets; participation in and provision of financial services related to an issuer’s offer and sale of a virtual digital asset.
| Exchange | Change in volumes a week after PMLA Act |
|---|---|
| WazirX | 125.28 % |
| Coindcx | 131.38 % |
| Zebpay | 108.26 % |
| Bitbns | -23.22 % |
Experts tell businessline however that the PMLA act has not necessarily inspired confidence on the investor side. Rajagopal Menon, Vice President at WazirX said, “the key takeaway should be that investors have not really been affected positively or aversley by the inclusion of crypto assets under the PMLA Act. The positive change in trading volumes in Indian exchanges is due to market volatility in Bitcoin. Bitcoin rose in the last 48 hours in relation to the banking crisis in the States. PMLA only affects exchanges, who will see an increase in compliance costs.”
Sidharth Sogani, Founder & CEO- of Crebaco Global added, “we are starting at such a low base that a 100 per cent increase in volume does not really mean much. This is because this regulation does not really affect investors in any manner. However, it is a positive step for Indian crypto exchanges.”
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