According to reports, the latest Indian crypto bill will necessitate the requirement for sharing KYC (Know Your Customer) data of users with several regulators and government agencies for verification. The latest bill will command for a uniform KYC procedure for all cryptocurrency exchanges though they have their own process as of now.
The new bill will mandate crypto exchanges to share the KYC info of their customers with government agencies and regulators. These government entities include the Reserve Bank of India, the Securities and Exchange Board of India (SEBI) and the income tax department.
This will aid regulators to analyze dealings across platforms. Also, it will aid them to find discrepancies and check against bank deposits. The new crypto bill calls for a uniform KYC regulation that has to be organized by every exchange. The KYC data will be compulsory for any inspection by any regulator.
The cause for such scrutiny lies in the likelihood that several crypto investors could be running multiple accounts across banks, crypto platforms and financial firms. The government is thinking to add crypto to Section 26A of the Income Tax Act in the upcoming budget, which will mandate taxpayers to disclose their crypto investments both in India and abroad.