The post What You Need to Know About India’s New Crypto User Verification Rules appeared on BitcoinEthereumNews.com.

India’s Financial Intelligence Unit (FIU) has introduced stricter compliance requirements for cryptocurrency platforms, significantly enhancing identity verification for users nationwide. Under the new rules, regulated crypto exchanges are required to verify users through live selfie authentication and geographic location data during the onboarding process. India’s Enhanced Verification Standards Target Deepfakes and Static Images The latest FIU rules take user verification further than simple document checks. Exchanges must use live selfie verification that requires dynamic movement, such as eye-blinking or head turns, to confirm the user’s presence. This step aims to prevent static images or deepfake attacks from bypassing identity controls. As noted by the Times of India, platforms must collect details at sign-up, including latitude, longitude, date, timestamp, and IP address. “The RE (crypto exchange) shall also ensure that the client whose credentials are being furnished at the time of onboarding is the same individual who is actually accessing the application and personally initiating the account creation process,” the guidelines read. The framework also expands documentation requirements. In addition to a Permanent Account Number (PAN), users must submit a secondary form of identification. This may include a passport, Aadhaar card (a 12-digit unique identification number issued by the Indian government), or a voter ID. Furthermore, email addresses and mobile numbers will undergo one-time password (OTP) verification to ensure accuracy. The penny-drop method, involving a small, typically refundable, bank transaction of 1 rupee, further verifies that the user owns the submitted account. Notably, users flagged as high-risk will face enhanced and more frequent compliance checks under the new FIU rules. This includes individuals with ties to tax havens, regions on the Financial Action Task Force (FATF) grey or blacklists, politically exposed persons (PEPs), or non-profit entities. Specifically, these users will have their KYC details updated every six months, compared with an…

---

Filed under: News - @ January 12, 2026 1:28 pm