India’s FIU Tightens Crypto Regulations to Combat Terrorism Financing and Money Laundering
India's Financial Intelligence Unit (FIU) has introduced stringent Know Your Customer (KYC) protocols for cryptocurrency users, targeting terrorism financing and money laundering. The new guidelines mandate the recording of geographical coordinates and bank account verification, reinforcing anti-money laundering measures.
Initial Coin Offerings (ICOs) and Initial Token Offerings (ITOs) face new limitations, with the FIU equating them to traditional stock market IPOs. Indian exchanges are now prohibited from offering mixing services or facilitating transactions involving anonymous tokens.
The updated regulations, reviewed by the PTI, mark the first major overhaul since March 2023. The FIU serves as the primary regulator for crypto exchanges under India's Prevention of Money Laundering Act (PMLA). These measures aim to enhance transparency and curb illicit financial flows in the digital asset space.
