PMLA Act

Definition ∞ The PMLA Act stands for the Prevention of Money Laundering Act, an Indian parliamentary law enacted to combat money laundering and confiscate assets acquired from illicit activities. This legislation empowers authorities to investigate financial crimes and freeze suspicious funds. In the context of digital assets, the PMLA Act extends its reach to cryptocurrency transactions and related entities. Compliance is mandatory for all financial intermediaries operating in India.
Context ∞ The application of the PMLA Act to cryptocurrency in India is a major point of discussion and concern for the local digital asset industry. Regulators are actively clarifying how existing anti-money laundering provisions apply to decentralized finance and virtual asset service providers. News reports closely follow legal interpretations and enforcement actions under the PMLA Act, which significantly shape the operational environment for crypto businesses in India.