India's KYC procedure has become much more thorough

[BrolySSJ]

KYC's procedures and verifications have become quite common in exchanges and the reason that they have become necessary is so that criminal activity can be identified and as a result the correct legal action can be taken against these people. This criminal activity includes stuff like tax evasion and money laundering. To prevent this India has introduced a much more intense KYC procedure where you also have to provide proof of residence in addition to the proof of identification, and what is more is that you have to deposit funds into the exchange from your bank account.

You cannot use a third party application to deposit funds. By doing so this leaves a money trail that can be followed in order to prevent fraudulent activities. Do you think that this is a good idea?

 

[Kayzzy3]

KYC's procedures and verifications have become quite common in exchanges and the reason that they have become necessary is so that criminal activity can be identified and as a result the correct legal action can be taken against these people. This criminal activity includes stuff like tax evasion and money laundering. To prevent this India has introduced a much more intense KYC procedure where you also have to provide proof of residence in addition to the proof of identification, and what is more is that you have to deposit funds into the exchange from your bank account.

You cannot use a third party application to deposit funds. By doing so this leaves a money trail that can be followed in order to prevent fraudulent activities. Do you think that this is a good idea?

For people supporting strict KYCs around the, let it be known to them that it is an excuse by government of the world to sensor and possibly control the crypto space.

No doubt criminal elements can use crypto currencies privacy and independence to transfer I'll gotten fortune, but the involvement of different governments will do crypto Currencies damage then good.

Take for example, last month I heard the US government were planning to tax crypto holders and transactions, if that can be done, what make crypto currency transactions different from conventional bank transactions??

 

[EMMANUEL]

Is RBI simplifying the KYC procedure?

Every entity ("Regulated Entity" or "RE") regulated by the Reserve Bank of India ("RBI") is required to conduct customer due diligence ("CDD") on individuals (i) while establishing an account-based relationship; or (ii) while dealing with a beneficial owner, an authorized signatory, or a power of attorney holder related to any legal entity. For this purpose, an RE must adhere to the guidelines as provided by RBI under the Know Your Customer (KYC) Directions, 2016 ("KYC Directions") as amended from time to time.

In January 2020, with a view to use of digital channels for the customer identification process ("CIP") by REs, RBI amended the KYC Directions, amongst other things, to also allow 'Video-based Customer Identification Process' ("V-CIP"). The V-CIP is a consent-based alternate method of establishing the customer's identity for customer onboarding. In fact, RBI's recent amendments to the KYC Directions indicates its intentions to simplify customer onboarding and to conform to the terms of the 'Digital India' campaign. Though a few lapses may occur , RBI is definitely closer to a complete online process for customer onboarding.

 

[BrolySSJ]

For people supporting strict KYCs around the, let it be known to them that it is an excuse by government of the world to sensor and possibly control the crypto space.

No doubt criminal elements can use crypto currencies privacy and independence to transfer I'll gotten fortune, but the involvement of different governments will do crypto Currencies damage then good.

Take for example, last month I heard the US government were planning to tax crypto holders and transactions, if that can be done, what make crypto currency transactions different from conventional bank transactions??

I have also heard about the potential to tax crypto users on their earnings and with the transactions that they make. I think that this is the way that the governments are hoping to try and benefit from the crypto world in order to legalize it. From the perspective perhaps they don't see the point in legalizing a currency that does not brig benefit to them? But I do get what you are saying and if they do such then many may move away from crypto which would not be a good thing.

 

[ahmedo24]

The introduction of tax and if implemented it is likely that they are already in support of Crypto currencies, the tax will surely bring them much revenue because there are more Crypto currency users though I wouldn't know if the tax is going to be in Crypto or fiat currencies.

 

[BrolySSJ]

The introduction of tax and if implemented it is likely that they are already in support of Crypto currencies, the tax will surely bring them much revenue because there are more Crypto currency users though I wouldn't know if the tax is going to be in Crypto or fiat currencies.

If there is a tax that is implemented later on into exchanges and the crypto world then I am guessing that this will likely be in terms of crypto and not fiat currency because you are generally taxed in the currency that you are using. So perhaps it will be a percentage of the crypto that you have or something of that nature. Tax however shows tracking of crypto and so forth which kind of may defeat the purpose for which it was created.

 

[ahmedo24]

If there is a tax that is implemented later on into exchanges and the crypto world then I am guessing that this will likely be in terms of crypto and not fiat currency because you are generally taxed in the currency that you are using. So perhaps it will be a percentage of the crypto that you have or something of that nature. Tax however shows tracking of crypto and so forth which kind of may defeat the purpose for which it was created.

Wow!! If the government will be taxing both the earners and Exchange plaforms based on the Currency then they wouldn't have option to be fully active in Crypto currencies because they will need wallet to store the coins and possibly convert to fiat currencies.

 

[BrolySSJ]

Wow!! If the government will be taxing both the earners and Exchange plaforms based on the Currency then they wouldn't have option to be fully active in Crypto currencies because they will need wallet to store the coins and possibly convert to fiat currencies.

Yes they would need to be fully invested into the crypto world and would need to have their own wallets to be able to do this. However, in my opinion for a government to be able to get a crypto wallet to be able to get these taxes, it will be a requirement that wallets have ample security. Currently, even hardware wallets are susceptible to and are capable of having security breaches, and therefore it is very important to up security on wallets before governments consider such.

 

[Alexandoy]

I like this KYC procedure because that will establish the real identity of the user. We are now like in the olden days when there is no caller ID on landline phone that you cannot identify a caller. Those were the days when prank calls are common. Think of getting a call by midnight with a scary voice, that would really make you panic. But when the caller ID was implemented here those prank callers vanished. With the strict implementation of KYC we can minimize the scamming activities.

 

[Ehizzy1]

I think the use of kyc is really more important most especially during this period of scammers and hackers , i think this is to actually reduce the rate which is increasing daily and others, and most people get scammed by those third party option and others that is the main reason why the government are taking strict regulation about the use of it

 

[Patrik]

You cannot use a third party application to deposit funds. By doing so this leaves a money trail that can be followed in order to prevent fraudulent activities. Do you think that this is a good idea?

yes, because third party applications are easy to be hacked and more exposed to hackers than websites, also getting viruses, malwares and trojans to phone users is much easier than someone could do to inject it in a website

 

[BrolySSJ]

yes, because third party applications are easy to be hacked and more exposed to hackers than websites, also getting viruses, malwares and trojans to phone users is much easier than someone could do to inject it in a website

By third party applications they mean that you cannot use a faucet for example in order to deposit into your account on the exchange. Or you cannot use a wallet to deposit on your account. These are third party applications that they are referring to. You have to withdraw crypto to your bank account by converting it to your fiat currency, and then you can then deposit it into the exchange to leave that trail behind in case there are legal proceedings from your activities.

 

[Patrik]

By third party applications they mean that you cannot use a faucet for example in order to deposit into your account on the exchange. Or you cannot use a wallet to deposit on your account. These are third party applications that they are referring to. You have to withdraw crypto to your bank account by converting it to your fiat currency, and then you can then deposit it into the exchange to leave that trail behind in case there are legal proceedings from your activities.

I thought you meant ordinary applications, thanks for correcting me!

 

[BrolySSJ]

I thought you meant ordinary applications, thanks for correcting me!

Not a problem. I realize that there was some ambiguity with how I stated it after reading your comment, so thank you for allowing me the opportunity to clear that up and make it clear. It might make it clearer for those that read the article after this as well.

Are the KYC procedures that are utilized in exchanges in your region similar to that which India is implementing at the moment?

 

[Trojan8]

I think the increased scrutiny with KYC stems from increased cyber fraud. I believe government are allowing such processes so that third parties application will be secured. While I don't exactly like the process I understand the need to. It just unfortunate that good people are also suffering the effects of this.

 

[BrolySSJ]

I think the increased scrutiny with KYC stems from increased cyber fraud. I believe government are allowing such processes so that third parties application will be secured. While I don't exactly like the process I understand the need to. It just unfortunate that good people are also suffering the effects of this.

Yes there are those that have not done anything wrong who would have to abide by the same order to use cryptocurrency exchanges with in India. In my opinion whilst I see the need for we sort of procedures, I think that the sort of verification should be limited to the people that are trading in large amounts on these cryptocurrency platforms. Therefore, if you do not go above a certain value then you should be allowed to trade freely without having to worry about the source of the income. However, for this to be implemented there must be a fail-safe in place to ensure that nobody create more than one trading account try and bypass this procedure.

 

[Ralphjoe]

This is actually a welcome development for cryptocurrencies as a whole, being that it's giving more credibility to the concept of cryptocurrencies, it's capable of making cryptocurrencies more acceptable speedily as it also reduces fraud.

 

[WhiteHouse]

That's not bad, it's a good thing, as long as funds and people Cryptocurrencies is safe and sound there's nothing wrong in submitting your original identifications if you are are not a scam or planning to perpetuate fraud.

 

[Samuel77]

Well I don't really know much about that but according to your explanation and I see it as a good idea for anyone, but at the same time it is still risky.

 

[Bookwormlux1]

This is a good idea and it's far better than just waking up to ban crypto currencies generally. A regulation to check things this way is better.