CMC News

India Imposes Live Selfie Checks for Crypto Exchange Users, Says The Times of India

India's Financial Intelligence Unit has issued new guidelines requiring crypto exchanges to verify users through live selfie authentication and location tracking. The regulatory agency sets Anti-Money Laundering and Know Your Customer standards for the country's #cryptocurrency platforms.

Exchanges must verify selfies with software that tracks eye and head movements, according to The Times of #India. The technology aims to prevent #AI deepfakes from bypassing #KYC verification processes during account creation.

Platforms will collect geolocation data and IP addresses when users create accounts. Exchanges must record timestamps for each account registration to satisfy compliance requirements under the new rules.

Anti-Money Laundering protocols now require exchanges to verify user bank accounts by sending small test transactions. Users must also submit government-issued photo identification and verify email addresses and mobile numbers before accessing registered exchanges.

The regulations reflect India's approach to digital assets in a market with significant growth potential. The country's population exceeds 1.4 billion people, representing one of the largest addressable markets globally for blockchain adoption.

India's Income Tax Department met with parliamentary lawmakers on Wednesday to discuss cryptocurrency's impact on tax enforcement. Officials argued that #decentralized finance platforms, anonymous wallets, and cross-border functionality complicate tax collection efforts.

Tax regulations varying by jurisdiction make efficient cryptocurrency taxation difficult, ITD officials told lawmakers. The department claims that permissionless blockchain technology undermines government revenue collection.

Under India's Income Tax Act, cryptocurrency sale gains face a 30% tax rate. Users can deduct only the original purchase cost against profits.