What the Indian Financial Authority Bans Privacy Token Transactions

MissedTheBoat · 2026-01-30T14:07:47+00:00

India's financial intelligence agency has ordered domestic digital asset exchanges to halt all transactions involving privacy tokens. This move is part of a risk mitigation strategy that bans deposits and withdrawals for these assets, classifying them as "unacceptable" and enhancing control measures to prevent misuse in line with regulations.

MissedTheBoat

2026-01-30 14:07:47

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Currently, India’s financial intelligence agency has issued an official directive to domestic digital asset exchanges to cease all transaction operations involving privacy tokens. According to reports from Foresight News, this move is part of a strategy to strengthen the risk mitigation framework by imposing a comprehensive ban on deposit and withdrawal activities for these asset categories.

Strict Directive for Local Trading Platforms

The authorities have classified privacy tokens as ‘unacceptable assets’ in their latest risk management protocol. This instruction mandates all cryptocurrency exchanges operating in India to immediately halt the offering of transaction services related to these assets, both in deposit and withdrawal forms.

Impact and Limitations on Digital Asset Flows

This restriction policy is designed to enhance capital controls and prevent the potential use of privacy assets for activities that do not comply with Indian regulatory standards. With this ban in place, users and trading platforms are now required to adjust their operations to fully align with the directives of the financial authorities.

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