In a significant move to enhance regulatory oversight, India”s Financial Intelligence Unit (FIU) has introduced more stringent anti-money laundering (AML) and know your customer (KYC) protocols for cryptocurrency exchanges. These new requirements are aimed at reinforcing user verification processes and curtailing illegal activities associated with digital currencies.
The updated onboarding procedures necessitate live selfie verification that utilizes liveness detection technology. Additionally, exchanges must implement geolocation tracking, which records latitude, longitude, IP address, and timestamp to ensure user authenticity. Another critical component is the confirmation of bank accounts through small test transfers, alongside the necessity for multiple government-issued identification checks.
Furthermore, exchanges are mandated to verify both email and mobile numbers of their users. These rigorous measures are designed to promote greater transparency and traceability within the crypto market, simultaneously allowing for continued trading without imposing a ban on cryptocurrency.
While these enhancements are intended to foster a safer trading environment, they may lead to slower onboarding processes for new users. This development underscores India”s commitment to tightening regulations in the cryptocurrency space while balancing the need for innovation and user accessibility.
