India has increased surveillance on crypto platforms in Jammu and Kashmir and border regions to combat illicit finance and terror funding. The Financial Intelligence Unit has instructed exchanges to monitor transactions from 'private wallets,' which allow direct peer-to-peer transfers without oversight. This move aims to prevent the exploitation of crypto for terror financing due to the region's conflict-prone nature. The directive goes beyond routine reporting requirements, focusing on transactions from border locations. Concerns have been raised about privacy coins complicating enforcement efforts. Despite the risks, there is potential to strike a balance between privacy and security using Web3 technology. This crackdown aligns with global efforts to combat crypto-financed terrorism, as seen in recent cases of individuals funneling funds to terrorist groups. India's actions reflect a broader trend of increased scrutiny on crypto transactions for security purposes. Read more AI-generated news on: https://app.chaingpt.org/news