India Mandates Live Selfies, Geo-tagging for Crypto Users to Combat Illegal Activity

• India's FIU introduces stringent AML/KYC protocols for crypto exchanges, classifying them as VDA service providers.
• New rules mandate 'live selfies' with liveness detection and geo-tagging (latitude, longitude, IP address) during user onboarding.
• Users must provide PAN, a secondary ID (Passport, Aadhaar, Voter ID), and complete a 'penny-drop' transaction for bank verification.
• Guidelines strongly discourage ICOs/ITOs due to high risk and lack of economic justification, and prohibit anonymity-enhancing tools like tumblers/mixers.
• Exchanges must register with FIU, submit suspicious transaction reports, and update KYC for high-risk clients every six months, others annually.

Why It Matters: India tightens crypto regulations with mandatory live selfies and geo-tagging to curb money laundering and terror financing.