Crypto News India – On July 9, 2025, Indian authorities intensified scrutiny of cryptocurrency exchanges, linking Bitcoin and Tron to illicit activities like terrorism financing, drug trafficking, and cybercrime. Sources revealed that top investigative agencies uncovered criminals using VPNs, fake accounts, and unregistered platforms to launder money via Bitcoin and Tron. This has prompted calls for stricter regulations to curb unregulated crypto trading in India.
The RBI has long warned of cryptocurrencies’ potential to undermine financial stability, with Governor Sanjay Malhotra reiterating concerns about monetary policy risks.
The Supreme Court’s recent urging for a clear regulatory framework reflects growing alarm, particularly after comparing Bitcoin trading to “hawala” transactions.
India’s high crypto adoption, ranking first globally, amplifies these concerns, as unregistered platforms bypass KYC/AML norms, enabling illicit transactions.
Data from TRM Labs indicates that 1% of crypto activity involves illicit use, a small but significant portion given India’s $130 billion remittance market.
Exchanges like WazirX and CoinSwitch, compliant with KYC, face pressure to enhance monitoring, while unregistered platforms remain a challenge.
The government’s upcoming crypto discussion paper, expected by late July, may propose measures to regulate exchanges and limit anonymous trading.
The crackdown could reshape India’s crypto landscape, pushing for mandatory registration and transparency.
However, it risks alienating retail investors already burdened by high taxes, as noted, potentially driving activity underground. Balancing security with innovation remains critical as India navigates this challenge.
