India tightens crypto rules to fight money laundering and terror funding

India's financial intelligence agency has introduced stricter identity verification measures for cryptocurrency exchanges aimed at preventing money laundering and terror financing. This regulation requires exchanges to rigorously verify the identity of customers, removing anonymity and enhancing market transparency. While investors might welcome the improved oversight, there are concerns about increased hurdles for trading. The recent tightening of regulations follows a surge in cryptocurrency transactions in India. The government aims to align with international standards, reflecting a serious commitment to mitigating illicit activities associated with cryptocurrencies. However, these stringent regulations may pose burdens for newcomers and small businesses, raising fears that such measures could stifle economic growth in a burgeoning market where investor interest is rapidly increasing.