Indian financial regulators require exchanges to delist anonymous enhanced tokens and strengthen monitoring of non-custodial wallet transactions

TokenomicsTrapper · 2026-01-23T06:54:10+00:00

India's financial intelligence agency FIU has demanded that cryptocurrency exchanges cease offering anonymous enhanced crypto tokens(ACE) services and has classified them as "unacceptable assets." The main concern is the difficulty in tracking funds, especially through mixing tools and self-custody wallets. Exchanges are required to establish data collection mechanisms and assess transfer limit restrictions to address the risks of money laundering and illegal fund flows.

TokenomicsTrapper

2026-01-23 06:54:10

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【ChainNews】India’s Financial Intelligence Unit (FIU) recently issued instructions to domestic cryptocurrency exchanges, requiring platforms to immediately cease providing services related to anonymous enhanced crypto tokens (ACE). This means users will no longer be able to deposit or withdraw ACE tokens on these platforms, and related assets have been officially classified as “Unacceptable Assets” under the risk mitigation framework.

The core concern for regulators is fund tracing. The FIU specifically highlighted the risks of mixing tools such as “tumbler” and “mixer,” warning that these tools could be used to obscure the flow of funds from sanctioned or blacklisted addresses, making it difficult to trace the source of funds. Similar risks also exist in transfers to self-custody wallets—once funds are moved to wallets outside of exchanges, tracking becomes significantly more challenging.

To address this risk, exchanges are required to implement specific measures: establish data collection mechanisms related to non-custodial wallets and assess whether to set transfer limits for such transactions. This reflects the regulatory authorities’ increased emphasis on compliance when combating money laundering and illegal fund flows.

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GasFeeNightmare

· 14h ago

Another ban on coins? India seems to want to wipe out all privacy coins. It's not surprising that mixers are being targeted, but if this continues, self-custody wallets will also be monitored, which is ridiculous. I heard someone’s assets have been frozen; quickly transfer to a cold wallet. India’s regulations are getting stricter and stricter, now ACE holders are crying. FIU’s move is ruthless, directly removing trading pairs. How can retail investors exit? Basically, they’re afraid of losing track of the money; privacy coins are always the thorn in regulators’ side. Self-custody wallets might also be targeted for asset seizures? Then what is truly decentralized? This wave of delistings is likely to affect several exchanges, and there will definitely be follow-up actions.

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TokenDustCollector

· 01-23 07:22

India's recent actions seem to be aiming to crush privacy coins completely, leaving no room for mixers and tumblers...

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FlatlineTrader

· 01-23 07:20

Here comes another ban on coins, India is really quick with this pace --- Mixer being targeted is true, these things should have been regulated long ago --- It's indeed difficult to track self-custody wallets, I understand the regulators' anxiety --- The list of unacceptable assets is getting longer, exchanges are having a hard time --- Once mixing tools are banned, how can privacy coins survive? --- Difficult to trace the source of funds, this is what regulators fear the most --- India's quick actions, are other countries also catching up? --- Non-custodial wallet transfers, regulators will never be able to keep up --- Now ACE holders should be worried, what else can they do? --- Tumbler and mixer, these two names are now banned words

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StakoorNeverSleeps

· 01-23 07:19

India is starting to regulate again, now ACE holders should be worried.

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OvertimeSquid

· 01-23 07:18

India is at it again, and ACE is in trouble... Once mixers are banned, users have to find their own solutions. Anyway, privacy coins will eventually be cracked down on sooner or later.

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ForkTongue

· 01-23 07:05

India is really cracking down hard on privacy coins, with a complete ban on mixers... Wait, what about my self-custody wallet? Isn't this just forcing everyone to use exchanges?

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TxFailed

· 01-23 06:57

ngl, india's basically saying "we can't track your coins so nobody gets to have fun" lol. mixer tools go brrrr then get nuked, classic regulatory playbook honestly. self-custodial wallets are next on the chopping block, calling it now.

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