The Indian government is enhancing its oversight of crypto operations, requiring exchanges to pay special attention to transactions in border areas.
Guidelines for Crypto Exchanges in India
The Indian government has issued guidelines for crypto exchanges urging them to pay special attention to transactions involving individuals from Jammu and Kashmir and border areas. The financial intelligence unit, which deals with preventing money laundering, has directed local crypto platforms to monitor and report trades, including operations involving private wallets.
Restrictions on Withdrawals
In recent months, stricter restrictions on user withdrawals have been implemented. Users are now required to provide more information about the recipient of funds and the reason for the transfer. This measure is aimed at reducing abuses of the anonymity that cryptocurrencies provide.
Challenges with Anonymity in Cryptocurrencies
Privacy-focused cryptocurrencies, such as Monero and Z-Cash, are still not available on Indian platforms. Users can trade cryptocurrencies like USDT on foreign exchanges such as Binance, but these operations are difficult for Indian authorities to track. Additionally, the market regulator, Sebi, has mandated alternative investment fund trustees to consider money laundering and terrorism financing risks.
The tightening of control over cryptocurrency operations in India underscores the government's commitment to preventing financial crimes and abuses in the realm of crypto investments.
