India's FIU Mandates Biometric KYC for Crypto Platforms

India's Financial Intelligence Unit has introduced stringent new Know Your Customer and Anti-Money Laundering regulations for cryptocurrency platforms, mandating advanced biometric verification and enhanced monitoring to combat fraud and illicit activities. The guidelines, issued on January 8, require all registered virtual digital asset service providers to implement live selfie checks with liveness detection during user onboarding, effective immediately to align with the Prevention of Money Laundering Act.

Under the updated rules, cryptocurrency exchanges must verify users' identities through live selfies that incorporate movements such as blinking or head turns, ensuring the person is physically present and not using static images or deepfake technology. Platforms are also required to collect precise geolocation data, including latitude and longitude, along with IP addresses, timestamps, and device metadata at the time of account creation. Users must provide a Permanent Account Number card alongside a secondary government-issued photo ID, such as an Aadhaar card, passport, or voter ID, and confirm ownership of mobile numbers and email addresses via one-time passwords. To...