India’s Financial Intelligence Unit Intensifies Scrutiny on Privacy Cryptocurrencies
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India Strengthens Cryptocurrency Regulations
The Financial Intelligence Unit of India (FIU‑IND) has initiated a significant crackdown on privacy-centric cryptocurrencies, targeting Monero (XMR), Zcash (ZEC), and Dash (DASH). These cryptocurrencies are recognized as the foremost privacy coins globally, known for their ability to conceal transaction details.
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India’s Strategic Move Against Privacy Coins
On Friday, market analyst MartyParty shared insights on the social media platform X (formerly Twitter), revealing that FIU‑IND directed registered cryptocurrency exchanges in India to halt all activities related to Monero, Zcash, and Dash. This includes suspending deposits, withdrawals, and trading.
The core issue for regulators is the advanced cryptographic technology these privacy coins utilize, which masks transaction information and user identities. Monero employs ring signatures to obscure sender and receiver identities, Zcash facilitates shielded transactions to hide transaction data, and Dash offers optional privacy features.
While these technologies appeal to users seeking anonymity, regulators argue that they hinder exchanges from fulfilling know-your-customer (KYC) and transaction-monitoring responsibilities. Consequently, these features are seen as increasing the risk of money laundering, terrorist financing, and sanctions evasion.
Comprehensive Measures Enforced on Indian Exchanges
The directive affects all cryptocurrency exchanges registered in India, requiring them to cease support for these assets, including delisting and blocking all deposits, withdrawals, and related trading pairs. This move aligns with the broader regulatory efforts to ensure compliance with Indian financial laws.
Market Reaction to India’s Regulatory Actions
This regulatory push is part of a broader initiative by Indian authorities. For instance, in October 2025, FIU‑IND instructed internet service providers to restrict access to 25 offshore crypto exchanges that failed to comply with registration requirements.
Currently, only a few exchanges remain fully compliant and operational within India, including Binance, Mudrex, Coinbase, CoinSwitch (CoinSwitch Kuber), and ZebPay.
Privacy Coins Show Market Resilience Amid Pressure
Despite regulatory challenges, the market prices for Monero, Zcash, and Dash demonstrated short-term resilience. Within the last 24 hours, these cryptocurrencies experienced price gains after recovering from significant losses earlier in the week.
Monero was trading at $524, marking a 3.5% daily increase. Zcash saw a modest rebound, rising 2.2% to $372. Dash exhibited the strongest performance, surging 11.6% over the same period.
However, the overall trend remains negative. CoinGecko data indicates that Monero, Zcash, and Dash have experienced substantial weekly declines of approximately 21%, 8%, and 20%, respectively, over the past seven days.
Volatility and Market Trends
The daily chart reveals volatility in XMR’s performance over the past week, with short-term support at $500.
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