India's Financial Intelligence Unit (FIU) has rolled out stricter compliance requirements for cryptocurrency and Virtual Digital Asset (VDA) service providers, marking a significant shift in the regulatory landscape. The updated framework introduces three pivotal changes that platforms must implement immediately.

First, crypto firms are now mandated to designate a dedicated Principal Officer responsible for overseeing anti-money laundering (AML) compliance measures. Second, CERT-In cybersecurity audits become a regulatory requirement, strengthening the security posture of platforms operating in the Indian market. Third, and perhaps most notably, exchanges and custodians must now collect and disclose sender and receiver information across transactions—extending even to self-custody wallet transfers, a move that significantly reduces anonymity in the ecosystem.

These stringent rules reflect India's determination to bring cryptocurrency operations under tighter regulatory control while building institutional safeguards.