‘Live selfies, geo-tagging mandatory for crypto users’, Pg17

Key Highlights:

• The Financial Intelligence Unit (FIU) has introduced new Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols for cryptocurrency exchanges.
• Crypto exchanges are now classified as Virtual Digital Asset (VDA) service providers.
• New rules mandate "live selfies" with liveness detection and geographical tracking during user onboarding.
• Users must provide a secondary ID like Passport, Aadhaar, or Voter ID, along with OTP verification.

Detailed Insights:

• The new measures aim to eliminate illegal activity within the digital asset market by enhancing user verification.
• Liveness detection prevents the use of static photos or deepfakes during the onboarding process.
• Recording latitude, longitude, date, timestamp, and IP address provides a comprehensive user location record.
• The "penny drop" method is required to confirm the bank account's activity and ownership.

Key Concepts Involved:

• AML (Anti-Money Laundering): A set of procedures, laws, and regulations designed to stop the illegal generation of income.
• KYC (Know Your Customer): The process of a business verifying the identity of its clients and assessing potential risks.
• Virtual Digital Asset (VDA): A digital representation of value that can be digitally traded or transferred and can be used for payment or investment purposes.