India's financial regulatory authorities have recently taken action. The financial intelligence unit (FIU) under the Ministry of Finance has issued updated guidelines, explicitly requiring crypto trading platforms to prohibit deposits and withdrawals involving so-called "Anonymous Enhanced Tokens" (ACE).

Which coins are affected by this ban? Mainly privacy coins like Monero, Zcash, and Dash. The reason behind the FIU's decision is straightforward: these coins' anonymous features can conceal transaction sources, fund ownership, and transaction amounts, providing opportunities for illegal activities—significantly increasing risks such as money laundering and fund transfers. Therefore, the FIU has classified these assets as high-risk.

For exchanges, this means that these privacy coins will face strict regulation in the Indian market. For users, exchanges registered in India may find it difficult to support trading and withdrawals of these coins. This also reflects the global regulatory community's general caution towards privacy coins— the stronger the anonymity, the more vigilant regulators become.