Okay,here’s a summary of the facts provided,broken down into key points:
India is increasing regulation of cryptocurrency exchanges.
* New KYC rules: The Financial Intelligence Unit (FIU) is implementing stricter “Know Your Customer” (KYC) rules.
* Purpose: These rules are intended to combat money laundering and terrorist financing.
* Key Requirements for Exchanges:
* Selfie with Liveness Detection: Users must submit a selfie that proves they are a real, live person.
* Location Data: Precise latitude and longitude coordinates of the user’s onboarding location (with date/timestamp) must be recorded.
* Bank Account Verification: Exchanges must verify bank account ownership using a “penny-drop” method (likely a small deposit to confirm access).
* PAN required: Users must provide their Permanent Account Number (PAN).
* IP Address Recording: The user’s IP address during account creation must be recorded.
* Legal Basis: These requirements are based on the Prevention of Money Laundering Act (PMLA).
* Registration & Reporting: All crypto exchanges are required to register with the FIU and report suspicious transactions.
* Update to Existing Guidelines: These are updates to guidelines initially released in March 2023.
In essence, India is taking a more assertive stance on regulating the crypto space to increase clarity and prevent illicit financial activity.
