India Tightens Crypto KYC Rules With Live ID and Location Checks
India's Financial Intelligence Unit has imposed stricter identity verification requirements on cryptocurrency platforms, classifying exchanges as Virtual Digital Asset service providers under updated AML/KYC guidelines. The MOVE targets money laundering risks inherent in pseudonymous crypto transactions.
Exchanges must now conduct live identity checks during onboarding, surpassing basic document uploads. Enhanced Client Due Diligence mandates collection of PAN numbers, verified bank details, and technical identifiers including IP timestamps, geolocation data, and wallet addresses.
Market participants view the regulations as a double-edged sword—while increasing compliance burdens, the clarity reduces enforcement uncertainty that previously hampered operations. The rules reflect global trends toward greater crypto surveillance following FATF recommendations.
