India's Big Move: Tougher Rules for Crypto Users

India is making it harder for people to use crypto. The country's Financial Intelligence Unit (FIU) has just introduced stricter rules. These rules are meant to stop money laundering and make sure people are who they say they are. First, crypto platforms must now check users' identities using live selfies. This is to stop fake photos made by AI. The platforms also need to know where users are when they sign up. They do this by checking the user's location and IP address. On top of that, users must link their bank accounts to their crypto accounts. The platforms send a small amount of money to the bank account to make sure it's real. Users also need to provide a government ID, email, and phone number.Why is India doing this? Well, crypto is becoming more popular in India. With over 1. 4 billion people, India has a huge potential market for crypto. But the government wants to make sure everything is safe and legal. Now, let's talk about taxes. India's tax department says crypto makes it hard to collect taxes. They say decentralized exchanges and anonymous wallets make it difficult to track who owns what. Plus, different rules in different places make it even more complicated. Currently, crypto gains are taxed at 30% in India. But users can only deduct the original cost of the crypto, not any losses from other sales. This means if you lose money on one crypto sale, you can't use that loss to reduce taxes on profits from another sale.