💳 Indian Crypto Exchanges Propose Identity Checks for Transfers to Private Wallets
Crypto exchanges are collaborating on a potential regulation that would enhance oversight and combat illicit activities in the cryptocurrency space. The proposed rule would require individuals sending cryptocurrencies to disclose the identities of the recipients' private wallets.
When holding cryptos in an exchange's wallet, they can be transferred to various destinations, including another domestic exchange's wallet, the holder's private wallet, another individual's private wallet, or an overseas exchange's wallet.
The last two types of transfers are categorized as "high-risk" transactions. To comply with the Prevention of Money Laundering Act (PMLA), reporting entities such as crypto platforms would generate "suspicious transaction reports" (STRs) based on predetermined criteria, such as customer profiles, transaction values, and frequencies.