By Admin 
Crypto Regulations India: In view of the cases of fraud and illegal transactions continuously emerging from the crypto currency market, the Government of India has decided to make the rules more stringent. Now opening an account on a crypto platform will not be as easy as before. Because users will have to go through processes like live selfie, geo-tagging and advanced identity verification.
The new guidelines of the Financial Intelligence Unit (FIU) aim to increase transparency in the digital asset market by curbing money laundering, terrorist funding and other illegal activities. Let us know what changes have been made…
Strict KYC rules for crypto exchanges
To further strengthen surveillance in the crypto market, the Financial Intelligence Unit has issued new anti-money laundering and KYC guidelines on January 8. Under the new rules, now crypto exchanges will not be able to add customers only on the basis of document upload.
According to the new guidelines, users will have to take a live selfie while opening the account. In which the real person will be identified through signals like blinking of eyes or nodding of head. Along with this, geographical information of the user will also be recorded. Which includes recording the location, date, time and IP address of account creation.
E-mail and Mobile OTP Verification
E-mail and mobile OTP verification has been made mandatory for customers. Also, the penny-drop process has been included under the new rules. In this process, a transaction of Re 1 will have to be done to verify the bank account information. Apart from PAN card, other IDs like Aadhar card, Voter ID will also be required.
Crypto exchanges will have to keep data secure
The new rules of the government clearly state that crypto exchanges should keep the data related to the transactions of all customers safe for a minimum of five years. Also, KYC has been made mandatory every 6 months for high risk customers and every 1 year for other customers.
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