India tightens KYC requirements for crypto platforms
FIU unit has introduced new customer identification rules for crypto platforms, increasing oversight of user onboarding and transactions
12.01.2026 - 08:35
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Key points:
- The FIU now requires crypto platforms to conduct real-time biometric verification of users.
- Platforms must collect geolocation data, IP addresses and the exact time of account creation.
- The measures are aimed at strengthening AML controls and curbing anonymous transactions.
India’s Financial Intelligence Unit (FIU), operating under the Ministry of Finance, has approved updated AML and KYC standards for cryptocurrency exchanges and related services. The requirements apply to all virtual digital asset service providers operating in the country.
Under the new rules, platforms must verify a user’s physical presence during registration. This includes a real-time “live selfie” with eye and head movement checks designed to prevent the use of static images and deepfakes.
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What data platforms must now collect
In addition to biometric verification, exchanges are required to record users’ geographic coordinates, IP addresses and the exact date and time registration begins. Platforms must also verify bank accounts through a small test transaction.
Users are required to submit an additional identity document and confirm their email address and phone number via a one-time code. KYC data must be updated every six months for high-risk clients and at least once a year for all other users.
Regulator’s stance
The FIU highlighted its negative view of tools that increase transaction anonymity. The regulator said mixers, fund-obfuscation tools, as well as ICOs and ITOs, pose elevated risks of money laundering and terrorist financing.
Crypto platforms are required to retain customer and transaction data for at least five years and to report suspicious activity in line with India’s anti-money-laundering laws.
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