India's financial intelligence agency has recently tightened regulations on privacy-focused cryptocurrencies, directing all domestic crypto exchanges to suspend operations involving these tokens. Based on latest reports, privacy coins have been classified as 'restricted assets' within a new compliance and oversight framework, making deposits and withdrawals of such tokens prohibited on regulated platforms.

The move reflects India's intelligence agency stance on privacy-enhanced cryptocurrencies, which are viewed as potential compliance risks. By restricting these digital assets' circulation through official exchange channels, the India intelligence agency aims to strengthen financial oversight and mitigate potential money laundering concerns. Cryptocurrency exchanges operating in the country must now cease facilitating any trading activity or fund transfers related to privacy tokens, marking a significant escalation in the nation's regulatory approach to digital assets.