The Financial Intelligence Unit (FIU-IND) Indian has warned cryptocurrency exchanges to be alert and vigilant on transactions linked to persons located in Jammu & Kashmir (J&K) and border areas after intel agencies stumbled upon Crypto tokens named “Pahalgam” and “Operation Sindoor” on crypto platforms like Solana.
The crypto bourses have been asked to be on high alert to track J&K transactions for money laundering and terror funding.
“Crypto exchanges and applications are asked to closely monitor and report transactions involving 'private wallets' which let users manage digital coins avoiding exchanges registered in India bypassing KYC regulations,” confirmed a senior FIU official adding that crypto exchanges have been asked to prioritise monitoring and reporting trades by individuals in border areas.
The federal money-laundering and financial crimes agency in an advisory asked local crypto platforms to monitor and report trades involving 'private wallets' that allow managing of virtual digital coins without relying on third parties like exchanges or crypto custodians.
The crypto bourses were put on alert to keep tabs on withdrawals from exchange wallets to private wallets as well as deposits in them.
According to senior FIU officials, regular banking channels are avoided in making payments for terror activities and cryptos are used to avoid detection. The crypto currencies are moved from an exchange wallet to a private wallet for direct transfer to the private wallet of the payee through a blockchain network.
