India is once again tightening its crypto grip, this time targeting deals from Jammu and Kashmir and nearby border areas. The government is asking exchanges to closely monitor these transactions amid concerns about money laundering and illegal financing, the economic era reported.
This follows the recent attacks in Pahargam, Kashmir, and has seen tensions and security concerns rise. Crypto Tokens, named “Pahalgam” and “Operation Sindoor”, have also appeared on platforms such as Solana.
The Indian Financial Information Unit (FIU-IND), which tracks financial crimes, reportedly advised that Indian crypto exchanges are highly vigilant about such possible activities.
Private wallet transactions were closely monitored
These wallets allow users to send cryptography directly from one person to another without using exchanges or custodians, so exchanges are instructed to monitor private wallet transactions more closely. This makes it difficult to track these funds, especially if they are being moved for illegal purposes.
Sources have revealed that for now the focus is not only on regular suspicious transactions, but also on monitoring transactions from border areas.
Like banks, crypto exchanges must regularly report suspicious transaction reports (STRs) to the FIU. Last year, crypto withdrawal rules were tightened, and given the untrackable nature of crypto, we asked users where the funds were headed to prevent misuse.
Some Indian crypto exchanges have checked whether Binance wallet belongs to customers before allowing withdrawals. But the real concern is that once the funds reach vinance, they can be relocated almost anywhere. Furthermore, there are no international guidelines for foreign cryptographic transfers yet.
Meanwhile, Sebi is asking the trustees of alternative investment funds (AIFs) to pay attention to the funding risks of money laundering and terrorism.
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