The Indian Financial Intelligence Unit has ordered cryptocurrency exchange platforms operating in the country to immediately suspend all trading, deposits, and withdrawals of privacy-focused cryptocurrencies, namely Monero (XMR), Zcash (ZEC), and Dash (DASH), citing concerns over money laundering and terrorism financing related to the anonymity features of these assets.
What happened: ban on private cryptos
Market analyst MartyParty reported this development on social network X, indicating that FIU-IND had issued this directive to all registered crypto platforms.
The regulator's order requires platforms to remove these three tokens from their listings, block all deposits and withdrawals, and disable associated trading pairs. The reason: the cryptographic techniques used by these assets to obscure transaction details, wallet balances, and user identities.
Monero uses ring signatures to conceal senders and recipients. Zcash offers shielded transactions that hide transaction data. Dash provides optional privacy features.
Regulators believe that these capabilities make it difficult for platforms to comply with know your customer (KYC) obligations and transaction monitoring. This directive follows an order from October 2025 in which FIU-IND requested internet service providers to block access to 25 offshore cryptocurrency platforms that had not registered in India.
Only a handful of platforms remain fully compliant, including Binance, Mudrex, Coinbase, CoinSwitch, and ZebPay.
Also read: XRP Pattern Hints To Potential $4 Price Target, Analyst Claims
Why it matters: a resilient market despite pressure
Despite this regulatory action, the targeted tokens showed short-term price gains within 24 hours of the announcement.
Monero was trading at $524, up 3.5% on the day. Zcash rose by 2.2% to reach $372. Dash recorded the highest daily performance, jumping 11.6%.
Overall, DASH has established itself as the best-performing cryptocurrency among the 300 largest digital assets this week, with an increase of over 100%, surpassing its privacy sector rival Monero, against a backdrop of renewed investor interest in financial privacy tools and expanded merchant acceptance.
Next read: What's Behind LayerZero's 40% Surge Amid Quiet Markets?
