KYC Data Must Now Be Stored For 5 Years By Cryptocurrency Exchanges. Is The Industry Saying Yes Or No?

2022-05-07 | Selina Mathew

KYC Data Must Now Be Stored For 5 Years By Cryptocurrency Exchanges. Is The Industry Saying Yes Or No?

The Indian Computer Emergency Response Team (CERT-In) has ordered that all Virtual Private Network (VPN) providers and crypto exchanges keep customer data records for up to five years in order to improve India's cybersecurity and crypto infrastructure. The regulations will take effect in June 2022.

This information is needed to "guarantee cybersecurity of payments and financial markets of people," according to CERT-In, which is part of the Ministry of Electronics and Information Technology. In the aftermath of virtual assets like cryptos gaining traction, the goal is to strike a balance between client data protection and economic independence.

Scams using cryptocurrency are on the rise in India.

According to a Chainalysis analysis, Indian visitors visited crypto fraud websites such as coinpayu.com, coingain.app, and others 9.6 million times. Even internationally, such frauds accounted for the lion's share of all cryptocurrency-related crimes, with investors losing $7.7 billion in bitcoin. That was in the year 2021.

To put the scale of these scams into perspective, in 2021, there were over 3,300 active and operating frauds worldwide at any given time. This number is expected to reach 2,052 by 2020.

In fact, India's Enforcement Directorate (ED) is now looking into seven incidents in which cryptocurrency was used to launder money.

 

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