India Tightens KYC Requirements for User Registration on Cryptocurrency Trading Platforms

Techub News reported, according to The Times of India, India's Financial Intelligence Unit (FIU) has issued new guidelines tightening user registration rules for cryptocurrency trading platforms. The new regulations mandate that regulated crypto trading platforms must verify user identities through real-time selfies and geolocation.

According to the rules, users must take a "live selfie" using software capable of verifying their actual presence through features like blinking or head movements, a measure aimed at preventing the use of static images or deepfake technology. Exchanges must also record the latitude, longitude, date, timestamp, and IP address used when a user creates an account. Furthermore, exchanges must follow the "one-penny verification" method, which involves conducting a nominal transaction of 1 Rupee to confirm that the provided bank account is valid and belongs to the registrant. Additionally, users are now required to submit a second identity proof document, such as a passport, Aadhaar card, or voter ID, along with OTP verification for their email ID and mobile number.