cryptocurrency
Cryptocurrency Guidelines for Exchanges and Users: To stop illegal activities in the crypto market, the Financial Intelligence Unit (FIU) of India has issued strict new guidelines. Now, under the new ‘Anti Money Laundering’ and Know Your Customer guidelines for crypto exchanges, new steps are being taken to confirm the identity of customers, which will prevent deepfake fraud. According to these latest guidelines issued on the 8th of this month, crypto exchanges have been classified as virtual digital asset service providers. Now they will have to face deeper scrutiny beyond just uploading documents. Rules like checking of physical presence and geo-tagging have been made mandatory. These guidelines have been updated in March 2023, almost three years after they were first published.
Users will have to take live selfie – investigation will be done using software
Under this, users will now have to take a ‘live selfie’. In this, such software will be used, which will confirm that the person himself is present there. In this you will be asked to blink or nod your head. This step has been taken to prevent fraud through photos or ‘deepfakes’.
It is mandatory to provide IP address while creating an account.
Also, while creating an account, accurate records will have to be kept about the latitude and longitude of the users location, date, time and which IP address the user is using. Transaction of only one rupee has been made mandatory to prove activation and ownership of bank account. Under this, along with PAN card, other identity proof like Aadhaar, passport or voter ID will have to be given. Also, OTP verification of email and phone number is also necessary.
Know what else is in the guidelines
These guidelines discourage Initial Coin Offerings (ICO) and Initial Token Offerings (ITO) by exchanges, which are similar to IPOs in stock exchanges. These state that transactions involving Tumblr, Mixer and anonymity-enhancing tokens should not be facilitated.
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