India has increased surveillance on cryptocurrency transactions, specifically targeting activities from border regions like Jammu and Kashmir, in an effort to combat terror financing. The Financial Intelligence Unit (FIU-IND) has instructed crypto exchanges to closely monitor 'private wallets,' which facilitate peer-to-peer transactions without oversight. This directive arises amid global concerns about the use of cryptocurrencies for money laundering and terrorism financing. The government is particularly wary of privacy coins such as Monero and Zcash, which can obscure transaction trails. This initiative reflects ongoing tensions between India and Pakistan regarding Jammu and Kashmir, where authorities suspect that cryptocurrency could be exploited by terrorist organizations. The call for heightened scrutiny follows several high-profile cases globally, including the seizure of funds linked to terror groups by U.S. authorities. Experts suggest that while cryptocurrencies can pose enforcement challenges, they also offer opportunities for innovative solutions to track illicit financing.

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