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 regulations for crypto exchanges. Because of this, opening and using a crypto account is no longer as easy as it used to be.
These new rules aim to make crypto trading safer and more transparent for investors.
Major Changes Introduced by the Government
To stop money laundering and fraud, the government has introduced five major changes. Every crypto investor should understand these new requirements clearly.
1. Live Selfie Verification Is Now Compulsory
Crypto exchanges will no longer accept old or uploaded photos. Users must take a live selfie using their device camera.
During this process, the system may ask you to blink, nod, or move your head to confirm that you are a real person and physically present. This step helps prevent fake identities and deepfake fraud.
2. User Location Will Be Geo-Tagged
Crypto exchanges will now track your location when you open an account or make a transaction.
They will record details such as your exact latitude, longitude, and IP address to monitor suspicious activities.
3. Strict Bank Account Verification Required
Simply providing bank account details is no longer enough. A “penny drop” verification has been made mandatory.
In this process, a small amount is sent to your bank account to confirm that the account actually belongs to you.
4. Two Government ID Proofs Are Mandatory
Earlier, submitting only a PAN card was sufficient. Now, along with PAN, you must provide one more government-approved ID.
This can be an Aadhaar card, passport, or voter ID.
5. OTP Verification for Email and Mobile Number
Separate OTP verification is now compulsory for both your email ID and mobile number. This adds an extra layer of security to your crypto account.
Why Were These Rules Introduced?
The Financial Intelligence Unit (FIU) has classified crypto exchanges as Virtual Digital Asset (VDA) service providers.
The main purpose of these stricter rules is to prevent illegal activities such as money laundering, terror funding,
and cyber fraud. At the same time, the government wants to make crypto trading safer and more secure for investors in India.
