India has implemented stricter regulations concerning cryptocurrency transactions in order to effectively combat the risks associated with money laundering and the potential funding of terrorist activities. These measures aim to enhance financial transparency, ensure compliance with international standards, and safeguard the integrity of its financial system by monitoring and regulating the use of digital currencies.
source: https://www.coindesk.com/markets/2026/01/12/india-tightens-crypto-rules-to-fight-money-laundering-and-terror-funding