India strictly prohibits trading privacy tokens, citing money laundering risks

Odaily News According to a report by The Economic Times, India's Financial Intelligence Unit (FIU) under the Ministry of Finance has instructed domestic cryptocurrency exchanges and platforms to cease offering anonymity-enhanced crypto tokens (ACE). They are prohibited from allowing deposits or withdrawals of such tokens and must classify them as "unacceptable assets" under the risk mitigation framework. The FIU also warned that using coin mixing tools like "tumblers" or "mixers," as well as transferring funds to self-custody wallets, could allow funds from sanctioned or blacklisted addresses to enter the system, making them difficult to trace. Platforms are required to collect data related to non-custodial wallets and assess whether to set limits on such transfers.