The Financial Intelligence Unit India (FIU-IND) has mandated cybersecurity audits for all Virtual Digital Asset (VDA) providers as a prerequisite for registration under the Prevention of Money Laundering Act, 2002. This decision follows significant cyber thefts in the cryptocurrency sector, prompting experts to advocate for enhanced regulatory measures to protect users and trace illicit transactions. While the move aims to bolster investor confidence and deter financial crimes, it raises concerns about compliance costs for smaller entities and the absence of a comprehensive legal framework for cryptocurrency in India. Ultimately, these developments signal the government’s intent to impose stricter oversight on the rapidly evolving crypto ecosystem while seeking to maintain a balance between innovation and regulation.