Overview
- The updated guidelines issued on January 8 classify exchanges as VDA reporting entities, requiring FIU registration and regular suspicious transaction reports.
- Onboarding must capture a live selfie with liveness detection along with the user’s latitude and longitude, date, timestamp and IP address.
- Bank account ownership and operational status must be verified via a Re 1 penny‑drop transaction.
- Users must provide PAN plus a second government ID with OTP verification of email and mobile, and exchanges must retain identity and transaction records for at least five years or until investigations conclude.
- Exchanges are directed not to facilitate ICOs or ITOs or transactions using anonymity‑enhancing tokens, tumblers or mixers, with enhanced due diligence and six‑month re‑KYC for high‑risk clients and annual updates for others.