Core Insights - India's Financial Intelligence Unit (FIU) has implemented stricter compliance requirements for cryptocurrency platforms, focusing on enhanced identity verification for users nationwide [1][2] Group 1: User Verification Enhancements - Regulated crypto exchanges must now verify users through live selfie authentication and geographic location data during the onboarding process [1] - The new rules require dynamic movement in live selfies, such as eye-blinking or head turns, to prevent static images or deepfake attacks from bypassing identity controls [2] - Platforms must collect detailed information at sign-up, including latitude, longitude, date, timestamp, and IP address to ensure the identity of the user [3] Group 2: Documentation and Verification Requirements - Users are required to submit a secondary form of identification in addition to a Permanent Account Number (PAN), which may include a passport, Aadhaar card, or voter ID [4] - Email addresses and mobile numbers will undergo one-time password (OTP) verification, and a small bank transaction of 1 rupee will be used to verify account ownership [5] Group 3: Compliance for High-Risk Users - Users flagged as high-risk will face more frequent compliance checks, with KYC details updated every six months compared to an annual refresh for standard users [6] - Enhanced due diligence is required for high-risk individuals, including those with ties to tax havens or politically exposed persons (PEPs) [6] Group 4: Stance on Anonymity and ICOs - The FIU has taken a strong stance against anonymity-enhancing tools, such as mixers and tumblers, which are used to conceal transaction trails [7] - The guidance also strongly discourages Initial Coin Offerings (ICOs) and Initial Token Offerings (ITOs), citing heightened risks related to money laundering and terror financing [7]