India has taken another step to tighten oversight of the cryptocurrency market, taking a tough stance on privacy-focused crypto assets.
The Financial Intelligence Unit (FIU) of the Indian Ministry of Finance has directed the country’s virtual currency exchanges and platforms to delist Anonymous Enrichment Coin (ACE).
Anonymous-centric tokens of this type are classified as unacceptable assets under the “Risk Mitigation Framework,” the FIU said in a statement. Therefore, crypto platforms are required to not allow deposits and withdrawals of these tokens. The decision is seen as an important step in combating crimes such as money laundering and terrorist financing.
Officials also warned against the use of mixing services such as “tumblers” and “mixers.” They emphasized that these tools make it difficult to trace funds originating from sanctioned or blacklisted addresses, which could allow these funds to enter the financial system. The FIU specifically noted that transfers made via such tools involve significant risks.
Under the new regulations, crypto platforms will be required to collect more data on transactions related to non-custodial wallets. Furthermore, there are also plans to introduce certain restrictions on transfers to such wallets. The purpose is to increase traceability and prevent illegal fund transfers.
Experts say India’s move is part of a growing global crackdown on privacy coins. Similar restrictions have been previously implemented in Europe and some Asian countries. India’s decision is expected to bring major changes to the country’s cryptocurrency ecosystem, with investors and platforms expected to adapt quickly to the new rules.
*This is not investment advice.
