Crypto-Linked Money Laundering Under PMLA Sees ₹4,189 Crore Seized, Centre Tells Parliament

On December 8, the Centre informed Parliament that enforcement agencies have attached assets worth approximately ₹4,189.89 crore in cases involving cryptocurrency-related money laundering under the Prevention of Money Laundering Act. The disclosure was made in response to a parliamentary query, highlighting the scale of action taken against illicit financial flows linked to digital assets.

According to the statement, the Enforcement Directorate has also issued more than 44,000 notices to cryptocurrency traders who failed to report transactions as mandated under existing financial and tax reporting norms. The figures underscore a significant escalation in regulatory scrutiny over crypto-linked money laundering under PMLA.

The update, reported by LiveLaw, reflects the government’s position that digital assets are firmly within the ambit of anti-money laundering enforcement, even as India continues to debate a comprehensive cryptocurrency law.

What Parliament was told about crypto enforcement actions

In its response to lawmakers, the Centre outlined the extent of assets attached under PMLA in cases involving cryptocurrencies. The amount of ₹4,189.89 crore represents proceeds of crime identified through investigations into money laundering activities where virtual digital assets were allegedly used to conceal or transfer illicit funds.

The government stated that enforcement action was not limited to asset attachment alone. A large number of notices have been served to crypto traders and entities for failure to comply with statutory obligations relating to transaction reporting and disclosures.

The parliamentary reply positioned these actions as part of a broader effort to curb financial crime in emerging asset classes, particularly where anonymity and cross-border movement of funds pose regulatory challenges.

Role of the Enforcement Directorate in crypto-linked probes

The Enforcement Directorate has been at the forefront of investigations into crypto-linked money laundering under PMLA. Empowered under the statute to attach assets believed to be proceeds of crime, the agency has increasingly focused on digital assets in recent years.

In crypto-related cases, the ED examines whether virtual currencies have been used to layer or integrate illicit proceeds into the financial system. Asset attachment under PMLA is a provisional measure aimed at preventing dissipation of suspected proceeds during the course of investigation.

The Centre’s statement to Parliament indicates that cryptocurrencies are no longer viewed as peripheral to money laundering enforcement but are treated on par with other financial instruments when linked to criminal activity.

Understanding crypto-linked money laundering under PMLA

Crypto-linked money laundering under PMLA refers to the use of virtual digital assets to disguise the origin, ownership, or movement of funds derived from criminal activity. Cryptocurrencies can be used to transfer value across borders quickly, sometimes without the same level of oversight as traditional banking channels.

The Prevention of Money Laundering Act allows authorities to attach assets, conduct searches, and prosecute individuals where money laundering is suspected. The inclusion of crypto-related proceeds within this framework reflects the evolving nature of financial crime.

The Centre’s disclosure highlights that PMLA provisions are being actively applied to cases involving unreported or suspicious crypto transactions, particularly where they intersect with scheduled offences under the law.

Issuance of over 44,000 notices to crypto traders

A striking aspect of the parliamentary disclosure was the revelation that more than 44,000 notices have been issued to crypto traders. These notices were sent to individuals and entities that allegedly failed to report transactions or comply with disclosure requirements.

Such notices typically seek explanations for discrepancies, non-reporting, or suspected violations of financial regulations. While the government did not detail the outcomes of these notices, their sheer volume indicates widespread scrutiny of crypto market participants.

The move reflects an enforcement strategy that combines high-value asset attachment with broad-based compliance checks across the crypto ecosystem.

Context of tightening oversight on digital assets

The Centre’s statement comes amid broader efforts to bring virtual digital assets within formal regulatory frameworks. While India does not yet have a standalone cryptocurrency law, various statutes relating to taxation, foreign exchange, and anti-money laundering are being applied to crypto activities.

In recent years, authorities have emphasised that anonymity associated with some crypto transactions cannot be used to evade regulatory oversight. The attachment of assets worth ₹4,189.89 crore signals that enforcement agencies are tracking crypto flows with increasing sophistication.

The parliamentary disclosure places crypto-linked money laundering under PMLA firmly within the government’s enforcement priorities.

Interaction between tax reporting and money laundering probes

Although the Centre’s reply focused on PMLA enforcement, the issuance of notices to traders also reflects overlap with tax and financial reporting requirements. Crypto transactions that are not properly disclosed can raise red flags for both tax authorities and money laundering investigators.

Non-reporting or misreporting of transactions may trigger scrutiny under multiple legal regimes. The government’s statement suggests coordination among agencies to identify patterns of non-compliance linked to crypto trading.

This integrated approach highlights how crypto-linked money laundering under PMLA often intersects with broader concerns around financial transparency.

Why asset attachment figures matter

Asset attachment figures provide insight into the scale and seriousness of enforcement action. The amount of ₹4,189.89 crore represents not only suspected proceeds of crime but also the value of assets temporarily frozen to prevent their dissipation.

Under PMLA, such attachments are subject to confirmation through adjudicatory processes. However, the reported figure itself reflects the volume of crypto-linked cases that have progressed to the stage of provisional attachment.

For policymakers and observers, these numbers offer a snapshot of how significantly digital assets feature in contemporary money laundering investigations.

Parliamentary disclosures and public accountability

The disclosure of enforcement statistics in Parliament serves an important transparency function. By placing figures on record, the government provides lawmakers and the public with insight into how anti-money laundering laws are being enforced in emerging sectors.

The Centre’s response indicates that crypto-linked money laundering under PMLA is not treated as a niche issue but as a substantial component of financial crime enforcement.

Such disclosures also contribute to informed debate on whether existing legal frameworks are adequate to address the challenges posed by digital assets.

Conclusion

The Centre’s statement that ₹4,189.89 crore has been seized in crypto-linked money laundering under PMLA highlights the intensification of enforcement against illicit use of digital assets. With over 44,000 notices issued to crypto traders, authorities appear to be combining targeted investigations with wide-ranging compliance action.

As cryptocurrencies continue to grow in popularity, the application of PMLA provisions to crypto-related cases signals a clear message from enforcement agencies. Digital assets, despite their technological novelty, are firmly subject to India’s anti-money laundering regime.

The parliamentary disclosure underscores that crypto-linked money laundering under PMLA has become a significant focus area within India’s broader financial crime enforcement landscape.