Overview
- The rules require liveness‑verified selfies, capture of latitude and longitude, IP address and timestamp, PAN plus an additional government ID, and OTP checks for phone and email.
- Platforms must verify bank account ownership via a nominal ₹1 “penny‑drop” transfer before activating services.
- All virtual digital asset providers serving Indian users must register with FIU‑IND as reporting entities under PMLA, file suspicious‑transaction reports, and retain customer and transaction records for at least five years.
- Exchanges are barred from facilitating mixers, tumblers and privacy tokens, and ICO/ITO activity is strongly discouraged as high risk.
- KYC updates are set at six months for high‑risk clients and annually for others, with enhanced due diligence for PEPs and users linked to FATF‑listed or tax‑haven jurisdictions; industry expects higher compliance costs and slower onboarding.