India orders crypto exchanges to suspend Monero, Zcash, and Dash, citing money laundering concerns tied to privacy coin features.
India has taken a new step in regulating digital assets after ordering crypto exchanges to restrict privacy focused tokens.
The Financial Intelligence Unit of India issued directions affecting Monero, Zcash, and Dash. Authorities cited money laundering and terrorism financing risks linked to anonymity features.
FIU Issues Directive to Registered Exchanges
The Financial Intelligence Unit instructed registered crypto exchanges to suspend trading, deposits, and withdrawals of select privacy coins.
The affected assets include Monero, Zcash, and Dash. Platforms were told to remove related trading pairs and disable wallet transfers.
According to reports, the order applies to all exchanges operating legally in India. The FIU stated that privacy features limit transaction traceability.
This creates challenges for know your customer checks and transaction monitoring.
Market analyst MartyParty shared the development on social network X. He stated that exchanges received direct instructions from FIU-IND.
There has been no indication of exemptions or phased timelines.
Privacy Features Raise Regulatory Concerns
Regulators focused on the technical design of privacy coins. Monero uses ring signatures to hide sender and receiver details. Zcash offers shielded transactions that conceal transaction data.
Dash includes optional privacy tools that obscure transaction trails. Indian authorities believe these features limit effective oversight.
The FIU considers such assets non-permissible under risk mitigation frameworks.
The regulator also banned related tools like mixers and tumblers. These tools can obscure transaction histories further.
Exchanges must now apply stricter checks on non-custodial wallet transfers.
Broader Crackdown on Crypto Compliance
This move follows earlier actions by Indian regulators. In October 2025, FIU-IND asked internet providers to block 25 offshore crypto platforms.
Those platforms had not registered under Indian rules.
India requires exchanges to comply with anti-money laundering laws. Only a limited number of platforms remain fully compliant.
These include Binance, Coinbase, CoinSwitch, Mudrex, and ZebPay.
Officials aim to bring crypto oversight closer to traditional finance standards. Authorities have stressed monitoring and reporting duties.
The focus remains on reducing illicit financial activity.
Related Reading: India FIU Tightens Crypto Oversight With 49 Registered Exchanges
Market Reaction and Industry Response
Despite the order, the affected tokens saw short-term price gains. Monero traded near $524 within 24 hours of the announcement.
Zcash rose to about $372 during the same period. Dash recorded the strongest move with a daily increase above 11 percent.
Data also showed Dash leading weekly performance among major digital assets. The gains occurred amid heightened trading activity.
Industry participants offered mixed reactions. Kishan Balaji, an independent node operator, commented on compliance needs.
He said, “Blockchain networks have to be designed and used in compliance with the laws of the land.”
Balaji added that enterprise networks now build compliance tools directly. These include identity checks and reporting standards. Regulators continue to monitor how exchanges enforce the new order.
Source: https://www.livebitcoinnews.com/india-orders-crypto-exchanges-to-suspend-monero-zcash-and-dash/
