Crypto hawala alarm

The recent rise of unauthorised crypto-based networks, which exploit unregulated digital currency transactions to move foreign funds into India, has emerged as a major concern.

- 

While India mandates registration and KYC compliance for Virtual Digital Asset Service Providers under the Prevention of Money Laundering Act, off-grid peer-to-peer crypto trading continues to evade the mechanism. In such operations, crypto wallet holders convert digital assets into cash through unregulated traders in major cities, effectively breaking the audit trail and enabling the circulation of untraceable money. Authorities warn that these practices pose serious risks to national security, facilitate illicit financing, and undermine the integrity of India's financial system, including confidence in the Indian rupee and overall economic stability