The Indian crypto community has been promoting cryptocurrencies, digital assets that are now close to being banned, according to reports. However, the community has some hope with the scheduled hearing in July 2019. The community is now bracing itself for the probable ban which has raised multiple questions under the Prevention of Money Laundering Act [PMLA].

Vijay Dalmia, an advocate at Vaish Associates, in an interview with Crypto Kanoon, a blockchain and crypto-news portal, demystified these blurred lines between trading in crypto and laundering in crypto.

Acts of Money Laundering are handled by Enforcement Directorate [ED], an entity that has the authority to seize black money in the form of cash, property, or even cryptocurrency, informed Dalmia. He said that this could be economically paralyzing for a person booked under the Money Laundering Act.

Dalmia also spoke about people owning crypto in a hardware wallet. He said that they could travel to other countries if they had bought the crypto legally and not in an attempt to launder money. The individual will not have to seek permission from the Reserve Bank of India [RBI].

Meanwhile, there are other people in the country working for foreign clients/employers who get paid in crypto, who worry that their salary could be counted as an act of laundering money. Dalmia shed light on ‘Contract Act’ which highlights that a person can get ‘salary’ for a ‘service’. However, this salary is not necessarily in cash and that is why if an individual receives ‘salary’ in crypto, it is not an illegal payment. He said,

“If you receive payment [in crypto], you can declare while filing Income Tax and convert it into cash.” He further added that “it is legit money.”

Dalmia further explained the taxation on crypto earnings and expressed his opinion on what could happen in the next hearing in the ‘RBI Vs Crypto’ case.

The post India Crypto Saga: Earning in cryptocurrencies is not illegal, explains prominent advocate appeared first on AMBCrypto.

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