India Implements New Crypto KYC Rules, Enhancing User Identity Verification
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 11 2026- Regulatory New Rules: India's Financial Intelligence Unit (FIU) has introduced new crypto KYC regulations requiring exchanges to implement real-time biometric checks, significantly tightening user identity verification to effectively address tax authorities' concerns about potential tax evasion through cryptocurrencies.
- Multi-layered Verification Mechanism: The new rules mandate users to submit a live selfie, undergo geolocation verification, and complete a small bank transfer during registration, creating a comprehensive audit trail that not only enhances compliance for exchanges but also strengthens support for financial investigations.
- Technological Upgrade Pressure: Exchanges must rapidly upgrade their technology to meet the new regulations, including integrating liveness detection software and secure geolocation APIs, which will increase operational costs but may also enhance platform security and user trust.
- User Experience Challenges: While the new regulations aim to enhance security, the complex registration process may affect user adoption rates, particularly among privacy-conscious individuals who may be concerned about the collection of biometric and location data, necessitating exchanges to balance compliance with user experience.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
