The government has brought cryptocurrency trading, safekeeping, and related services under the ambit of the Prevention of Money Laundering Act (PMLA).
The union finance ministry issued a notification to this effect on Tuesday. All exchanges between virtual digital assets (VDAs) and fiat currencies, safekeeping, administration, or sale of VDAs are to be covered under the Act.
Crypto exchanges and intermediaries dealing with VDAs are to perform know-your-customer (KYC) processes for all their clients.
Entities such as banks and other financial institutions, real estate and jewellery firms, casinos, etc., dealing in VDAs are to be considered “reporting” entities under PMLA and are required to maintain a record of all transactions.
Silvergate Announces “Voluntary Liquidation”
Silvergate Capital Corp., the holding company of Silvergate Bank, announced asset liquidation on Wednesday, a week after it was probed by independent auditors over its financial figures leading to a delay in filing its annual-k report.
On Wednesday, Silvergate announced to seek help from Centervie Partners as financial adviser and law firms Cravath, Swaine & Moore LLP, and Strategic Risk Associates for “transition management assistance.”
“In light of recent industry and regulatory developments, Silvergate believes that an orderly wind-down of bank operations and a voluntary liquidation of the bank is the best path forward. The bank’s wind-down and liquidation plan includes full repayment of all deposits.
“The company is also considering how best to resolve claims and preserve the residual value of its assets, including its proprietary technology and tax assets,” Silvergate Corp said in a press release.
