On February 2nd, 2026, Shri Ravindra Shukla Alias Ravi Kishan posed a question to the Minister of Finance regarding new Know Your Customer (KYC) norms for cryptocurrency exchanges, including selfies, geo-tagging, and mandatory Re.1 bank transactions to check illegal transactions.
Minister of State in the Ministry of Finance, Shri Pankaj Chaudhary, responded that Virtual Digital Assets Service Providers are ‘Reporting Entities' under the Prevention of Money-laundering Act, 2002. The Financial Intelligence Unit-India introduced AML/CFT Guidelines for Reporting Entities providing services related to Virtual Digital Assets on 10.03.2023. These guidelines were amended on 08.01.2026, enhancing KYC measures involving obtaining information like selfie of the client with liveness detection, latitude and longitude coordinates of the onboarding location with date and timestamp along-with IP address, mandatory bank transaction of Re.1 etc. along with verification of identity of the clients were introduced.
No special arrangement has been made to ensure privacy and data security of common investors, and there is no proposal under consideration to completely regulate or ban cryptocurrency.
Key Entities Referenced
Prevention of Money-laundering Act, 2002: The act under which Virtual Digital Assets Service Providers are considered 'Reporting Entities'.
KYC Norms: New Know Your Customer norms introduced involving selfies, geo-tagging, and mandatory bank transactions of Re.1 to check illegal transactions in cryptocurrency exchanges.
Financial Intelligence Unit-India: The organization that introduced AML/CFT Guidelines for Reporting Entities providing services related to Virtual Digital Assets.
AML/CFT Guidelines: Guidelines for Reporting Entities detailing how AML/CFT/CPF obligations are to be effectively implemented, especially concerning Virtual Digital Assets.
Ministry of Finance: The ministry responsible for matters related to KYC norms and cryptocurrency regulation, as indicated by the Minister of State in the Ministry of Finance.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTEMENT OF REVENUE
LOK SABHA
UN-STARRED QUESTION NO. 263
TO BE ANSWERED ON MONDAY, THE 02ND FEBRUARY, 2026
MAGHA 13, 1947 (SAKA)
Introduction of New KYC Norms
263. SHRI RAVINDRA SHUKLA ALIAS RAVI KISHAN
Will the Minister of FINANCE be pleased to state:
(a) whether the Government has introduced new Know Your Customer (KYC) norms like selfies,
geo-tagging and mandatory bank transactions of Re.1 to check illegal transactions in
cryptocurrency exchanges in the country;
(b) if so, the purpose of these new guidelines and the date from which it has been implemented;
(c) whether any special arrangement has been made under these provisions to ensure privacy
and data security of common investors;
(d) if so, the details thereof;
(e) whether the Government has any proposal under consideration to completely regulate or ban
cryptocurrency; and
(f) if so, the details thereof ?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) & (b) Virtual Digital Assets Service Providers are ‘Reporting Entities’ under the Prevention of
Money-laundering Act, 2002. As part of the said reporting rules, Financial Intelligence Unit-India
has introduced detailed AML/CFT Guidelines for Reporting Entities providing services related to
Virtual Digital Assets on dated 10.03.2023 which are applicable to all Reporting Entities detailing
the manner in which AML/CFT/CPF obligations are to be effectively implemented. These
guidelines were amended on 08.01.2026, enhancing KYC measures involving obtaining of
information like Selfie of the client with liveness detection, latitude and longitude coordinates of
the onboarding location with date and timestamp along-with IP address, mandatory bank
transaction of Re.1 etc. along with verification of identity of the clients were introduced.(c) & (d) No.
(e) No such proposal is currently under consideration.
(f) Does not arise.