Introduction
The Financial Intelligence Unit-India (FIU-IND) has recently issued a notification that could change the compliance environment for cryptocurrency exchanges operating in India. In alignment with the Prevention of Money Laundering Act (PMLA), the FIU has mandated that all crypto exchanges must redo Know Your Customer (KYC) procedures for their users before June 30, 2025.
This directive highlights a larger regulatory push to ensure that Virtual Digital Asset (VDA) platforms implement robust identity verification mechanisms and manage financial risks effectively.
What FIU’s Notification Means For Crypto Exchanges
Under the new guidelines:
Exchanges must update user details comprehensively.
Fresh KYC must be conducted for accounts older than 18 months.
Enhanced due diligence is required for high-risk accounts, demanding additional documentation and information.
This move signals the government’s intent to tighten oversight on crypto transactions and ensure platforms are not used for money laundering, fraud, or other illicit activities.
The Increasing Importance Of Seamless Digital KYC
The need for quick, reliable, and compliant KYC processes has never been more pressing. Crypto exchanges must rethink their onboarding and verification processes to meet these stringent demands without compromising user experience.
Traditional manual KYC methods are time-consuming, error-prone, and costly. Digital verification solutions, powered by advanced APIs and real-time data validation, offer a scalable and secure alternative.
At AuthBridge, we have been at the forefront of enabling enterprises to achieve faster, safer, and compliant identity verification across industries, and the crypto sector is no exception.
By integrating AuthBridge’s verification solutions, exchanges can not only comply with the FIU’s directives but also build greater trust with users and regulators alike.
Conclusion: Compliance As A Competitive Advantage
As India sharpens its regulatory frameworks around cryptocurrencies, compliance will no longer be a back-end function — it will become a core competitive differentiator.
Exchanges that invest early in AI-powered, API-first verification platforms like AuthBridge’s will be better positioned to scale sustainably, avoid penalties, and foster greater confidence among users and investors.
At AuthBridge, we remain committed to partnering with organisations to help them stay ahead of regulatory changes with innovative, reliable, and secure digital verification technologies.
