India's Financial Intelligence Unit (FIU) has mandated cybersecurity audits for all virtual digital asset (VDA) service providers, including exchanges and custodians. These firms must now hire auditors approved by the Indian Computer Emergency Response Team (CERT-In) to ensure compliance with bank-grade standards under the Prevention of Money Laundering Act, 2002. This directive aims to enhance security following recent crypto thefts, though concerns persist about auditors' ability to address crypto-specific vulnerabilities. The FIU has also introduced a new compliance certificate, replacing the previous 'Fit & Proper' certification. This move is part of India's broader regulatory strategy, which includes high taxation and ongoing scrutiny of the crypto sector. Currently, crypto-related crimes constitute 20-25% of the country's cyber offenses, highlighting the need for stringent oversight.