Why in the News
India’s Financial Intelligence Unit has rolled out stringent Anti Money Laundering and Know Your Customer norms for cryptocurrency exchanges, making live selfie verification and geographical tracking compulsory during user onboarding under guidelines issued on 8 January 2026.
Regulatory Framework
- Crypto exchanges classified as Virtual Digital Asset service providers
- Covered as Reporting Entities under the Prevention of Money Laundering Act
- FIU designated as the single point regulator for crypto exchanges in India
New Mandatory KYC Requirements
Live Selfie Verification
- Capture of live photograph
- Liveliness detection using eye blinking or head movement
- Prevents use of static images and deepfakes
- Confirms physical presence of the user
Geo Tagging and Technical Data
- Mandatory capture of
- Latitude and longitude
- Date and timestamp
- IP address of onboarding location
Penny Drop Verification
- Re 1 bank transaction
- Confirms bank account ownership and activity
Identity and Authentication
- Permanent Account Number compulsory
- One additional identity document
- Aadhaar
- Passport
- Voter ID
- OTP verification of mobile number and email ID
| [2020] With reference to “Blockchain Technology” consider the following statements:
1. It is a public ledger that everyone can inspect, but which no single user controls 2. The structure and design of blockchain is such that all the data in it are about cryptocurrency only 3. Applications that depend on basic features of blockchain can be developed without anybody’s permission. Which of the statements given above is/are correct? (a) 1 only (b) 1 and 2 only (c) 2 only (d) 1 and 3 only |
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