Hindi English Translation || Editorial || Belated, but essential: On bringing all trade in virtual digital assets under the PMLA

Belated, but essential: On bringing all trade in virtual digital assets under the PMLA

India must have a proper regulatory response to the surge (sudden increase or rise of something) in virtual assets (a digital representation of value that can be digitally traded, or transferred, and can be used for payment or investment purposes)

The Finance Ministry’s March 7 notification placing all transactions involving virtual digital assets (आभासी डिजिटल संपत्ति) under the purview (range, scope, ambit, compass) of the Prevention of Money Laundering Act (PMLA) is a much-needed (बहुत जरूरी), even if belated (विलंबित), step. The government has been struggling in recent years to formulate (frame, prepare, draw up, think up, work out) an appropriate regulatory (नियामक, संगठनात्मक) response to deal with the pandemic (महामारी)-era (time, period, epoch) upsurge (sudden increase, rise, growth, inflation) in advertisements soliciting (ask for, request, seek, call for) investment in virtual assets as well as (and also, and in addition) reports of actual investment. A July 2021 online report by BrokerChooser.com, for instance (उदाहरण के लिए), had estimated India as being the country with the highest number of ‘crypto (relating to a type of digital currency) owners’, at 10.07 crore, which was more than threefold (तीन गुना) the number of owners of crypto assets in the second-ranked U.S. Even if (यद्यपि) this is discounted (disregard, dismiss, ignore, overlook) as a speculative (risky, hazardous, unsafe, uncertain, unpredictable) guesstimate (approximation, estimate; projection, hypothesis, prediction), measures (उपाय) and disclosures (खुलासा, घोषणा) by the government indicate that the volume of trade in unregulated (अनियंत्रित) virtual assets has grown sizeably in recent years. Last month, Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha that the Enforcement Directorate (प्रवर्तन निदेशालय) was ‘investigating several cases related to cryptocurrency (a type of digital currency) frauds wherein (जिसमें) a few crypto exchanges had been found involved in money laundering’. And that as much as (approximately) ₹936 crore had been attached or frozen as on January 31, on being deemed (consider, regard as, see, view) to be proceeds of crime (अपराध की आय). The decision to mandatorily (mandatorily) bring all trade in virtual digital assets (in simple words, virtual digital assets are defined as any code or number or token generated through cryptographic means with the promise or representation of having inherent value) under the PMLA now lays (attribute, ascribe, attach, impose, hold someone responsible) the onus of ascertaining (find out, understand, recognize, get to know) the provenance (origin, source, place of origin) of all activity, including safekeeping (safeguarding, protection, safety), in such assets upon individuals and businesses participating (involve, engage, take part) in or facilitating (assist, help, aid, promote, ease, make possible) these transactions.

The intergovernmental Financial Action Task Force (FATF) (The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society) — the global money laundering and terrorist financing watchdog (a person or organization that monitors/inspects/supervises others’ activities/conducts. inspector/supervisor, observer, ombudsman) — has been continuously flagging (indicate, identify, point out) the potential (possibilities, potentiality, prospects, capability) that virtual digital assets have for criminal misuse considering the speed and anonymity (a condition of being unknown; a situation where the acting person’s name is unknown or not given) with which they can be traded worldwide. As it has pointed out, the fact that a few countries have moved (propose, put forward, recommend (for discussion and resolution at a legislative assembly)) to regulate (supervise, oversee, monitor, check, inspect, administer) virtual assets, and some others have banned them outright (complete, entire, total, categorical), while a majority have not taken any action has created a global system with loopholes (ambiguity in the law; flaw/fault, defect) for criminals and terrorists to abuse. India, which holds (occupy, have, be in a position) the presidency of the G-20, has been repeatedly (constantly, regularly, invariably) stressing the need for a globally coordinated regulatory response to deal with crypto assets. While the Centre’s decision to add the PMLA monitoring requirements, following the introduction of a tax regime for virtual digital assets in last year’s Budget, has been interpreted (explain, clarify, make clear, understand) by the crypto assets sector as moves (step, action, act, measure) towards regulating rather than (instead of) proscribing (ban, prohibit, forbid (by law)) it, the RBI’s consistent advocacy for a ban needs to be seriously (considerably, significantly, desperately) weighed (consider, think about, contemplate, deliberate about, reflect on) before any decision is taken on the fate of the long-delayed draft legislation (body of laws, acts, rules, regulations, statutes) on virtual assets.

Courtesy: The Hindu

Important Word List With Meaning

1.belated (adjective)

Hindi Meaning - विलंबित
English Meaning - late, behind time, not on time/delayed.

2.virtual digital asset (noun)

Hindi Meaning - आभासी डिजिटल संपत्ति
English Meaning - As per the provisions of section 2(47A) of the Income-tax Act, 1961, virtual digital asset means any information or code or number or token (not being Indian currency or foreign currency), generated through cryptographic means or otherwise, by whatever name called, providing a digital representation of value exchanged with or without consideration, with the promise or representation of having inherent value, or functions as a store of value or a unit of account including its use in any financial transaction or investment, but not limited to investment scheme; and can be transferred, stored or traded electronically.

3.regulatory (adjective)

Hindi Meaning - नियामक, संगठनात्मक
English Meaning - organizational, managerial, supervisory.

4.much-needed (adjective)

Hindi Meaning - बहुत जरूरी
English Meaning - needed to a large extent/degree/level; highly important, vital, essential.

5.even if (phrase)

Hindi Meaning - यद्यपि
English Meaning - despite the fact that.

6.pandemic (noun)

Hindi Meaning - महामारी
English Meaning - the worldwide spread of a new disease; The illness spreads around the world and typically affects a large number of people across a wide area.

7.for instance (phrase)

Hindi Meaning - उदाहरण के लिए
English Meaning - as an example.

8.three-fold (adverb)

Hindi Meaning - तीन गुना
English Meaning - having three parts.

9.measure (noun)

Hindi Meaning - उपाय
English Meaning - action, step, procedure.

10.disclosure (noun)

Hindi Meaning - खुलासा, घोषणा
English Meaning - report, declaration, announcement.

11.unregulated (adjective)

Hindi Meaning - अनियंत्रित
English Meaning - unrestricted, unchecked, uncontrolled (by regulations or laws).

12.Enforcement Directorate (ED) (noun)

Hindi Meaning - प्रवर्तन निदेशालय
English Meaning - Directorate of Enforcement is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance, Government of India. It was established in the year 1956 with its Headquarters at New Delhi. It is responsible for enforcement of the Foreign Exchange Management Act, 1999 (FEMA) (Civil Law) and certain provisions under the Prevention of Money Laundering Act, 2002 (PMLA) (Criminal Law).

13.wherein (adverb)

Hindi Meaning - जिसमें
English Meaning - in which.

14.proceeds of crime (noun)

Hindi Meaning - अपराध की आय
English Meaning - As per Section 2(u) of PMLA, 2005, proceeds of crime, means and property derived or obtained, directly or indirectly, by any person as a result of criminal activity relating to the scheduled offence or the value of any such property.

15.mandatorily (adverb)

Hindi Meaning - अनिवार्य
English Meaning - compulsorily, necessarily.

16.virtual digital asset (noun)

English Meaning - in simple words, virtual digital assets are defined as any code or number or token generated through cryptographic means with the promise or representation of having inherent value.

17.virtual (adjective)

English Meaning - performing a task with the use of computer, especially over a network.

18.Prevention of Money-Laundering Act (PMLA) , 2002 (noun)

English Meaning - It is an Act of the Parliament of India enacted by the NDA government to prevent money-laundering and to provide for confiscation of property derived from money-laundering.

19.surge (noun)

English Meaning - sudden increase or rise of something.

20.virtual asset (noun)

English Meaning - a digital representation of value that can be digitally traded, or transferred, and can be used for payment or investment purposes.

21.purview (noun)

English Meaning - range, scope, ambit, compass.

22.formulate (verb)

English Meaning - frame, prepare, draw up, think up, work out.

23.era (noun)

English Meaning - time, period, epoch.

24.upsurge (noun)

English Meaning - sudden increase, rise, growth, inflation.

25.solicit (verb)

English Meaning - ask for, request, seek, call for.

26.as well as (phrase)

English Meaning - and also, and in addition.

27.crypto (adjective)

English Meaning - relating to a type of digital currency.

28.discount (verb)

English Meaning - disregard, dismiss, ignore, overlook.

29.speculative (adjective)

English Meaning - risky, hazardous, unsafe, uncertain, unpredictable.

30.guesstimate (noun)

English Meaning - approximation, estimate; projection, hypothesis, prediction.

31.sizeably (adverb)

English Meaning - substantially, considerably, largely, significantly.

32.cryptocurrency (noun)

English Meaning - a type of digital currency.

33.money laundering (noun)

English Meaning - a secret act of moving illegally acquired funds into legal bank accounts or investments.

34.as much as (phrase)

English Meaning - approximately.

35.freeze (verb)

English Meaning - limit, restrict, confine; stop/suspend, stand still.

36.deem (verb)

English Meaning - consider, regard as, see, view.

37.proceeds (noun)

English Meaning - the amount of money received from an event/activity or from the sale of goods or services; income, revenue, profit, earnings, returns, gains.

38.lay (verb)

English Meaning - attribute, ascribe, attach, impose, hold someone responsible.

39.onus (noun)

English Meaning - responsibility, duty; burden, liability, obligation.

40.ascertain (verb)

English Meaning - find out, understand, recognize, get to know.

41.provenance (noun)

English Meaning - origin, source, place of origin.

42.safekeeping (noun)

English Meaning - safeguarding, protection, safety.

43.participate (verb)

English Meaning - involve, engage, take part.

44.facilitate (verb)

English Meaning - assist, help, aid, promote, ease, make possible.

45.inter– (prefix)

English Meaning - between; among.

46.Financial Action Task Force (FATF) (noun)

English Meaning - The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society.

47.watchdog (noun)

English Meaning - a person or organization that monitors/inspects/supervises others’ activities/conducts. inspector/supervisor, observer, ombudsman.

48.flag (verb)

English Meaning - indicate, identify, point out.

49.potential (noun)

English Meaning - possibilities, potentiality, prospects, capability.

50.anonymity (noun)

English Meaning - a condition of being unknown; a situation where the acting person’s name is unknown or not given.

51.point out (phrasal verb)

English Meaning - identify, indicate, specify, mention.

52.the fact that (phrase)

English Meaning - used to refer to a specific situation under consideration/discussion.

53.move (verb)

English Meaning - propose, put forward, recommend (for discussion and resolution at a legislative assembly).

54.regulate (verb)

English Meaning - supervise, oversee, monitor, check, inspect, administer.

55.outright (adjective)

English Meaning - complete, entire, total, categorical.

56.loophole (noun)

English Meaning - ambiguity in the law; flaw/fault, defect.

57.hold (verb)

English Meaning - occupy, have, be in a position.

58.presidency (noun)

English Meaning - premiership, leadership, chairmanship, stewardship.

59.G-20 (noun)

English Meaning - The G20, formed in 1999, is a group of twenty of the world’s largest economies that meets regularly to coordinate global policy on trade, health, climate, and other issues. It brings together the world’s major advanced and emerging economies. The G20 comprises Argentina, Australia, Brazil, Canada, China, EU, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, UK and USA. The G20 Countries together represent around 90% of global GDP, 80% of global trade, and two thirds of the world’s population.

60.repeatedly (adverb)

English Meaning - constantly, regularly, invariably.

61.stress (verb)

English Meaning - emphasise, underscore, highlight.

62.regime (noun)

English Meaning - system.

63.interpret (verb)

English Meaning - explain, clarify, make clear, understand.

64.move (noun)

English Meaning - step, action, act, measure.

65.rather than (phrase)

English Meaning - instead of.