News View Non-AMP

India Targets J&K Crypto Transactions Over Money Laundering Concerns

Published by
Nidhi Kolhapur

India is tightening its grip on crypto once again, and this time, transactions from Jammu & Kashmir and nearby border areas are targeted. The government has asked exchanges to closely monitor these transactions amid concerns over money laundering and illegal funding, reported The Economic Times. 

This follows a recent attack in Kashmir’s Pahalgam, which has increased tensions and security concerns. Crypto tokens named “Pahalgam” and “Operation Sindoor” also appeared on platforms like Solana. 

India’s Financial Intelligence Unit (FIU-IND), which tracks financial crimes, has reportedly advised some Indian crypto exchanges to be on high alert for such possible activities. 

Private Wallet Transactions Closely Monitored

The exchanges have been told to monitor the private wallet transactions more closely, as these wallets allow users to send crypto from one person to another directly without using exchanges or custodians. This makes it harder to track these funds, especially if they are being moved for illegal purposes. 

A source revealed that for now, the focus is on monitoring trades from border areas, and not just regular suspicious transactions.

Like banks, crypto exchanges must regularly report Suspicious Transaction Reports (STRs) to the FIU. Over the last year, crypto withdrawal rules have been tightened, asking users for more info about where their funds are going in order to prevent any misuse, given the untraceable nature of crypto.

Some Indian crypto exchanges are now verifying if a Binance wallet belongs to the customer before allowing withdrawals. But the real concern is that once the funds reach Binance, they can be transferred almost anywhere. Besides, there are no international guidelines for foreign crypto transfers yet. 

Meanwhile, SEBI has asked the trustees of Alternative Investment Funds (AIF) to keep an eye on money laundering and terrorism financing risks in their funds. 

FAQs

What is crypto money laundering?

Crypto money laundering is hiding illegal funds by moving them through digital wallets and unregulated crypto transactions.

What is the current status of crypto regulation in India?

India regulates crypto under financial laws, requiring KYC, STRs, and FIU oversight, but lacks a clear legal framework or crypto-specific law.

Nidhi Kolhapur

Nidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.

Recent Posts

Solana Price Prediction 2025, 2026 – 2030: SOL Price Targets $500 Next?

Story Highlights Solana Price Today is . Solana coin price could reach a potential high…

June 6, 2025

Best Crypto To Buy Now at $0.32: The 2025 Altcoin Set for a 1000x Surge

Kaanch Network stands at the forefront of 2025’s altcoin contenders, commanding attention with its current…

June 6, 2025

How Low Could Bitcoin Price Go in This Crypto Market Crash?

Highlights Bitcoin price fell 5.2% to a low of $100,345 yesterday due to leveraged trade…

June 6, 2025

Binance Coin BNB Price Prediction 2025, 2026 – 2030: Will BNB Hit New ATH?

Story Highlights Binance Coin Price Today is . The BNB price prediction anticipates a potential…

June 6, 2025

FCA Proposes Lifting Ban on Crypto ETNs for Retail Investors

The UK’s Financial Conduct Authority (FCA) has proposed ending its 2021 ban on crypto exchange-traded…

June 6, 2025

Japan Passes New Crypto Regulation : Here’s What’s New

On June 6, Japan's parliament officially revised the Payment Services Act (PSA), introducing a domestic…

June 6, 2025