Since the pandemic has made its foothold in India in 2020, an unprecedented inflow has been pouring in the unregulated, unchecked, uncertain and untested domain / market of Cryptocurrency.
A lot of apps like Bit BNS, WazirX, Binance etc. are allowing Indians to buy and sell different types of cryptocurrencies by undertaking a KYC Exercise in which generally PAN information and Aadhaar details are being required.
It wouldn’t be wrong to say the AI is being used for facial recognition in a few apps and many are even lacking that as well.
Concerns:
What are the latest developments in the Cryptocurrency space that are currently employed?
Does a private Organization ask for PAN and Aadhaar?
Also, there is a good possibility that they store this sensitive data on a server outside India.
As far as I know, the Government of India has not allowed private companies to ask, store, disseminate and use this critical piece of information, then how are these apps operating?
As the disastrous consequences of second wave are prevailing in India and people in their desperation have started to put their sensitive information and photos of Aadhaar and PAN on socials, it becomes very easy for the scammers to steal identities and use them for their nefarious purposes.
I would like to know your mind about this, and maybe we can brainstorm on this topic as a lot of people in their greed are trading in Crypto without any knowledge whatsoever.
thought i read sometime ago that India is banning possession of cryptocurrencies. I guess this is good news for me since I only use it for online casinos rather than payment. As for the payment methods, I don’t think I’m comfortable letting Bitcoin get traced back to me. As I said, I’ve head about news on Indian government’s stance on cryptocurrency so I’d rather not give any information. This should also be the case since crypto are marketed to practice privacy in the first place, not confidentiality.
1- Cryptocurrencies will be establishing a new order in the financial systems. Latest development and development coming in near future will be more focused on security and privacy of an individual. Protocols like Cardano, polkadot, Ethereum 2.0 etc are some of the sophisticated systems which will be eliminating the current concerns attached with Cryptocurrency.
2- Yes private organisations ask for KYCs but that is mostly because certain organizations are bounded by law to do so since they are regulated which is not in the case of crypto.
3- Indeed they are storing the data in servers outside of India but there are development which may record KYC over a blockchain, although this still has a long way to go.
4- Indian Government has never explicitly denied in any law for private organisations to not take KYCs from their customers. These exchanges or platforms ask for KYC in the first place to verify an individual associated with a particular bank account. Now since the Cryptocurrency space is not regulated, so eventually when it will be KYC collection will be one of the mandatory requirements.
5- didn’t understand this point clearly, need more information.