India has continued to work on its crypto policy but hasn’t clearly stated its stance yet. The latest in this regard is improved scrutiny measures from Polygon. The global political changes have forced crypto companies to take preemptive steps to prevent untoward happenings. The result has been restrictions regarding disclosing basic information and other necessary details.
India has taken many steps, including preventing some companies from processing customer requests regarding crypto payments. The reason for it is the absence of a legal framework, thus causing complications. Also, its authorities have said that they would wait for other countries to form their crypto policy and then go for theirs. It will help them stay clear and aware of the possible implications.
Here is a brief overview of Polygon’s steps and how it will impact the customers.
Increasing crypto regulations in India
Polygon has followed the directives of Indian authorities regarding crypto investments and grants. The mentioned authorities have required crypto companies to keep the details of transactions so that they can be tracked later. The reason for it is the increasing misuse of this platform by miscreants. Also, it would make it easier for law enforcement agencies and financial watchdogs to keep an eye on transactions.
Various countries have been thinking about forming crypto policy after continuing the recession in the market. The continuous losses for the investors have alarmed the authorities who aim to make this investment safer for the investors. According to the available details, Polygon has taken some steps, including enhanced scrutiny of the customers using KYC.
Polygon has required its partners to collect extensive details from the customers. The same policy holds for its prospective partners if they intend to join hands with Polygon. It has taken these steps due to increasing pressure from regulatory authorities.
Polygon is a Layer-2 side chain on Ethereum operating across the globe. It has asked its partners to collect the information to follow the guidelines set by Indian authorities.
According to sources, Polygon will get the relevant details from customers and then verify them for security. Grant donors or investors would have to comply with the guidelines to ensure that the legal requirements are fulfilled. The reason for increased scrutiny is tightening conditions from the regulators. According to the sources, any person who wants to send grants to a customer but isn’t willing to disclose the details won’t be able to process the request.
Any person with a legitimate transaction won’t shy away from sharing details. If they do, they are trying to do something illegal. Thus, authorities are trying to prevent it, asking Polygon to implement the new restrictions. An industry source said that developers have been facing difficulty in receiving funds. The reason cited for it is the increased restrictions due to which funding projects stopped altogether.
According to authorities, the halt to funds won’t last long as regulators try to simplify it. Introducing a crypto policy will make it easier for the customers and companies.
Conclusion
Polygon has taken some preemptive steps regarding regulation at the behest of Indian authorities. According to sources, these authorities have asked Polygon to improve its KYC scrutiny and verify the details of the customers. Any transaction where the customer is unwilling to offer required information won’t be processed. It has affected the Indian developers who have been facing problems in receiving funds. It is hoped that the problem will be solved soon. Though India has not yet finalized its crypto policy, it has plans to make considerations about it. Once India’s crypto policy is finalized, it will create ease for service providers and customers.
Source: https://www.cryptopolitan.com/polygon-looking-for-improved-kyc-scrutiny-in-india/