India Tightens User Verification Rules for Crypto Platforms
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 11 2026- User Verification Upgrade: India's Financial Intelligence Unit has issued new guidelines requiring crypto exchanges to verify users through live selfies and geolocation, thereby enhancing compliance with anti-money laundering and know-your-customer regulations, which is expected to boost user trust and market stability.
- Anti-Fraud Measures: The new rules mandate the use of software to track users' eye and head movements to prevent AI deep fakes from bypassing KYC verification, which will enhance the security of exchanges and reduce fraud risk.
- Account Creation Requirements: Crypto exchanges must collect geolocation, IP addresses, and timestamps at the time of user registration, and verify bank accounts through small transactions to meet anti-money laundering requirements, further standardizing market operations.
- Tax Compliance Challenges: India's Income Tax Department has highlighted that cryptocurrencies and decentralized finance platforms pose challenges to tax enforcement, emphasizing that the cross-border nature and anonymity of crypto transactions complicate effective taxation, potentially impacting government tax policies.
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.
