India's Financial Intelligence Unit (FIU) has officially released new regulations, significantly upgrading compliance requirements for domestic crypto trading platforms.

According to the new standards, crypto exchanges must implement more stringent identity verification processes. Users are required to complete live selfie verification, with the system recording location, time, and IP address information during verification, and must submit multiple types of identification documents. For customers deemed high-risk, exchanges are also required to conduct a round of enhanced due diligence every six months.

In terms of business scope, the new regulations explicitly prohibit platforms from offering fundraising tools such as ICOs/ITOs, as well as mixers and other tools that could be used to conceal fund flows. Exchanges must register and file with the FIU, establish a comprehensive suspicious transaction reporting mechanism, and properly retain all transaction data for up to 5 years.

These measures reflect the cautious attitude of Indian regulators towards crypto assets, continuing to include them within a strict financial regulatory framework.