If you invest in Bitcoin, Ethereum, or any other cryptocurrency in India, this update is very important for you.
India’s Financial Intelligence Unit (FIU) has tightened the rules for crypto exchanges. As a result, opening and operating a crypto account is no longer as simple as before.
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What Has Changed in the New Crypto Rules?
To prevent money laundering and fraud, the government has introduced five major changes. Every crypto investor should be aware of these new requirements.
1. Live Selfie Verification Is Mandatory
Uploading old photos will no longer work. To stop deepfake and fake identity fraud, users must take a live selfie using the camera.
During this process, the system may ask you to blink or nod to confirm that you are a real person and physically present.
2. Geo-Tagging of Users
Your location will now be tracked when you create an account or carry out a transaction. Crypto exchanges will record your exact latitude, longitude, and IP address.
3. Strict Bank Account Verification
Just sharing bank details is no longer enough. A “penny drop” verification has been made mandatory to confirm that the bank account actually belongs to you.
4. Two Government ID Proofs Required
Providing only a PAN card is no longer sufficient. Along with PAN, you must submit one more government ID, such as an Aadhaar card, passport, or voter ID.
5. Mandatory OTP Verification
Separate OTP verification for both email ID and mobile number is now compulsory.
Why Did the Government Introduce These Rules?
The FIU has classified crypto exchanges as Virtual Digital Asset (VDA) service providers.
The main aim of these strict rules is to prevent illegal activities, including money laundering, terror funding, and cyber fraud, and to make crypto trading more secure in India.