Crypto Renewal Rules: The rules for opening a crypto account in India have become more stringent. Live selfies, geo-tagging, and OTPs will now be mandatory for investors. If you are a crypto investor, it’s important to understand the new regulations.
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Crypto Renewal Rules: If you invest in cryptocurrencies or are planning to invest, you should know that new regulations have been introduced in India. Now, you will need to create a new account by requiring a live selfie, geo-tagging, and OTP. This strictness is being imposed by the government because crypto scams are rapidly increasing in India. This means that the rules for investing in crypto will no longer be as simple as before.
Rules for Opening an Account on a Crypto Platform in India
The Financial Intelligence Unit (FIU), which operates under the Ministry of Finance, has issued new regulations for cryptocurrency exchanges. These rules must be followed, otherwise, crypto investors may face increased difficulties. If you invest in cryptocurrencies, you should be aware of these changes. These new changes are aimed at curbing illegal activities like terrorist funding and money laundering, as well as preventing fraud.
New Crypto Rules
1. Email and Mobile OTP Verification Mandatory
Email verification, along with mobile OTP, has been made mandatory to open a crypto account. Verifying bank account information requires a one-rupee transaction, known as a penny drop process. Documents such as PAN card, Aadhaar card, and voter ID will be required for verification.
2. Data Must Be Protected
The new rules for opening crypto accounts in India also include regulations for crypto exchanges. The government mandates that crypto exchanges must preserve all customer transaction data for at least five years. For exchanges that deem customers to be high-risk, the e-KYC process should be mandatory for six months and for other customers for one year.
3. Selfie-Completed KYC
To monitor and maintain strictness regarding the increasing fraud in the crypto market, e-KYC rules have been tightened. The KYC process will not be completed by simply uploading documents. Instead, customers will be required to upload a live selfie to open a crypto account. This will require gestures like nodding and blinking, and geographic information will also be included.
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