Polygon Asks for KYC in India amidst Scrutiny
As India’s regulatory scrutiny grows, Polygon is tightening funding limitations for blockchain startups. As India’s regulatory scrutiny grows, Polygon is tightening funding limitations for blockchain startups.
Polygon, a layer 2 side chain, will now require the Know Your Customer (KYC) data in order to lend cash, investments, grants, or financial support to potential partners in India, according to a source familiar with the matter.
Polygon’s technology, according to the source, works with the Ethereum blockchain and strives to be “extremely compliant” because of increased regulatory scrutiny.
According to the source, anyone who refuses to disclose their full KYC credentials would be disqualified for any prizes.
“Anyone who is genuine should not be frightened to offer KYC information to minimize delays in the process.”
“It will be vital in the future,” the source continued.
Developers in India have lately voiced irritation with Polygon’s unwillingness to provide finance or investment, according to a third industry insider. Polygon has also reportedly ceased sponsoring activities in the nation, according to developers.
India’s crypto regulations are tightening.
Polygon has followed Indian government regulations for bitcoin investments and grants. The aforementioned authorities have made it mandatory for crypto firms to save transaction information in order to be monitored afterward. This is because crooks are increasingly exploiting this website. It would also make keeping track of transactions easier for law enforcement and financial authorities.
Polygon is collaborating with law enforcement.
According to insiders, Polygon will collect critical information from clients and then examine it for security. Grant givers or investors would have to follow the requirements to ensure that the legal conditions are satisfied. Authorities have tightened their criteria, which has resulted in increased scrutiny. According to the sources, anyone who wants to provide a client a grant but refuses to divulge information would be unable to do so.
Conclusion
Polygon has already adopted a number of regulatory procedures at the request of Indian authorities. According to insiders, these agencies have encouraged Polygon to tighten its KYC monitoring and double-check client information. Any transaction where the customer refuses to disclose requested information will be canceled. It has had an impact on Indian developers who have had trouble obtaining financing. It is believed that the issue will be rectified soon. India has not yet finalized its cryptocurrency policy, although it plans to do so soon. Service providers and users would have more alternatives once India’s crypto law is finalized.