India has ramped up surveillance of crypto transactions in Jammu and Kashmir and other border regions, following security concerns. The Financial Intelligence Unit (FIU-IND) advised crypto platforms to monitor transactions linked to 'private wallets,' enabling peer-to-peer transfers without oversight.

The government's move aims to curb illicit finance and cross-border terror funding, which could be obscured by these transactions. The border region has been a flashpoint, with crypto seen as a tool for bypassing financial routes and supporting terror networks.

Crypto platforms now face heightened scrutiny beyond routine reporting, with specific attention on transactions from border areas. Privacy coins like Monero and Zcash could complicate enforcement, but experts believe the right frameworks can balance privacy and security.

India's action aligns with global efforts to tackle crypto-financed terrorism. Law enforcement agencies worldwide are increasing scrutiny of digital assets linked to terror groups.

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