India enforces new crypto rules: live selfies, location checks, and bank verification to fight money laundering.

India has implemented stricter anti-money laundering and KYC rules for cryptocurrency exchanges, effective January 8, 2026, requiring live selfie verification with liveness detection, GPS location tracking, and a 'penny-drop' method to confirm bank accounts. Exchanges must register with the Financial Intelligence Unit, verify identities using PAN and secondary IDs, and retain customer data for at least five years. High-risk users face more frequent KYC updates, and exchanges are barred from facilitating anonymity tools like tumblers and mixers. The rules discourage ICOs and ITOs due to high-risk profiles.