India's Financial Intelligence Unit (FIU) has implemented stringent new Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols for cryptocurrency exchanges. These updated guidelines, effective January 8, mandate live selfie verification with liveness detection, geographical tracking (latitude, longitude, IP address), and a 'penny-drop' method to verify bank accounts during user onboarding. The FIU, operating under the Union Finance Ministry, also discourages Initial Coin Offerings (ICOs) and Initial Token Offerings (ITOs) due to high risks and lack of economic justification.