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Ethereum’s current strength is largely linked to its network performance and activity, which has been demonstrating robust growth. While the leading blockchain has witnessed sharp growth in several key areas, one area is currently standing out, and that is the economic activity on the network.

A Divergence Between Ethereum’s Real Activity And Price

With the broader cryptocurrency landscape evolving, Milk Road, a market expert and trader, has revealed that the Ethereum network is showcasing signs of robust strength. When compared to its recent price performance, the leading network subtly conveys a different narrative. 

Despite the fact that ETH’s market value has occasionally fluctuated or even lagged behind riskier assets, the quantity of economic activity being settled on the blockchain has continued to rise. The disparity highlights a crucial aspect of ETH’s current cycle that its fundamentals are strengthening beneath the surface, while market sentiment is not accurately reflecting it.

At the same time, the Ethereum network is being chosen for live deployment by increasing institutional capital. This kind of increases a chain that is becoming less of a speculative asset and more of a financial infrastructure. 

According to Milk Road, these participants are more focused on uptime, liquidity, settlement certainty, and compliance, which narrows the set of viable networks quickly. Meanwhile, the economic weight placed on Ethereum’s base layer becomes significant as more activity occurs on the chain, increasing transaction volume and fee income.

As seen in the past, ETH has had difficulty staying flat for extended periods of time when demand is high. However, the analyst expects the price of ETH to increase as adoption rises.

Real Assets Are Swamping The Network

According to a report from Leon Waidmann, the head of research at On-Chain Foundation, Tokenized Real-World Assets (RWAs) are quickly emerging as one of Ethereum’s key growth drivers. With real-world assets moving into ETH, the development is bringing traditional finance activity on-chain at a fast rate.

This change is more than just buzz as institutional infrastructure, token issuance, and settlement volumes are all growing at the same time, transforming ETH’s status. Data shows that the market cap of stablecoins found on the network is approximately $190 billion, indicating ETH’s growing choice as the major chain for crypto finance. 

Meanwhile, the total amount of tokenized funds has reached between $6 billion and $7 billion, and is still growing rapidly. Its tokenized commodities have hit over $4 billion, which appears to be still breaking out to new highs.  Furthermore, ETH’s tokenized stocks are valued at around $400 million to $500 million, but this is just the beginning. Such a scenario suggests that tokenization of real-world assets may be the foundation of Ethereum’s next significant adoption phase.

Considering the robust growth in these areas, Waidmann stated that “ETH is becoming the default settlement layer for real assets.” Waidmann’s claims are not based on simple narratives, but on the fact that the network already works at scale.

Ethereum needs “better decentralized stablecoins,” Vitalik Buterin said this weekend, arguing that the next iteration has to solve three design constraints that today’s models keep skirting. His comments landed alongside a broader claim from MetaLeX founder Gabriel Shapiro that Ethereum is increasingly a “contrarian bet” versus what much of the venture-backed crypto stack is optimizing for.

Shapiro framed the split in ideological terms, saying it is “increasingly obvious that Ethereum is a contrarian bet against most of what crypto VCs are betting on,” listing “gambling,” “CeDeFi,” “custodial stablecoins,” and “’neo-banks’” as the center of gravity. By contrast, he argued, “Ethereum is tripling down on disrupting power to enable sovereign individuals.”

Why Ethereum Lacks A Decentralized Stablecoin

Buterin’s stablecoin critique starts with what to stabilize against. He said “tracking USD is fine short term,” but suggested that a long-horizon version of “nation state resilience” points to something that is not dependent on a single fiat “price ticker.”

“Tracking USD is fine short term, but imo part of the vision of nation state resilience should be independence even from that price ticker,” Buterin wrote. “On a 20 year timeline, well, what if it hyperinflates, even moderately?” That premise shifts the stablecoin problem from simply maintaining a peg to building a reference index that can plausibly survive macro regime changes. In Buterin’s framing, that is “problem” one: identifying an index “better than USD price,” at least as a north star even if USD tracking remains expedient near term.

The second issue is governance and oracle security. Buterin argued that a decentralized oracle must be “not capturable with a large pool of money,” or the system is forced into unattractive tradeoffs that ultimately land on users.

“If you don’t have (2), then you have to ensure cost of capture > protocol token market cap, which in turn implies protocol value extraction > discount rate, which is quite bad for users,” he wrote. “This is a big part of why I constantly rail against financialized governance btw: it inherently has no defense/offense asymmetry, and so high levels of extraction are the only way to be stable.”

He tied that to a longer-running discomfort with token-holder-driven control structures that resemble markets for influence. In his view, “financialized governance” trends toward systems that must continuously extract value to defend themselves, rather than relying on a structural advantage that makes attacks meaningfully harder than normal operation.

The third problem is mechanical: staking yield competes with decentralized stablecoins for capital. If stablecoin users and collateral providers are implicitly giving up a few percentage points of return relative to staking ETH, Buterin called that “quite bad,” and suggested it becomes a persistent headwind unless the ecosystem changes how yield, collateral, and risk interact.

He laid out what he described as a map of the “solution space,” while stressing it was “not endorsement.” Those paths ranged from compressing staking yield toward “hobbyist level,” to creating a staking category with similar returns but without comparable slashing risk, to making “slashable staking compatible with usability as collateral.”

Buterin also sharpened what “slashing risk” actually means in this context. “If you’re going to try to reason through this in detail,” he wrote, “remember that the ‘slashing risk’ to guard against is both self-contradiction, and being on the wrong side of an inactivity leak, ie. engaging in a 51% censorship attack. In general, we think too much about the former and not enough about the latter.”

The constraint bleeds into liquidation dynamics as well. He noted that a stablecoin “cannot be secured with a fixed amount of ETH collateral,” because large drawdowns require active rebalancing, and any design that sources yield from staking must reckon with how that yield turns off or changes during stress.

At press time, ETH traded at $3,118.

В 2025 году прекратили существование 11,6 млн криптовалютных проектов, в десять раз больше, чем годом ранее, сообщили аналитики платформы CoinGecko. Это рекордное количество за всю историю наблюдений.

Стейблкоин USDT компании Tether стал главным инструментом обхода нефтяных санкций государственными компаниями Венесуэлы и средством выживания населения страны, рассказали опрошенные изданием Wall Street Journal (WSJ) эксперты.  

Asheesh Birla, the CEO of the largest XRP treasury company, Evernorth, has explained what his company is focused on, even as they continue to accumulate more XRP. Birla also explained what makes XRP stand out from other crypto assets in the market. 

What The XRP Treasury Company Evernorth Does 

During an interview on Paul Barron’s Podcast, Birla explained how his company’s approach differs from that of other digital asset treasury companies. He noted that the XRP treasury company helps grow the XRP ecosystem by offering both technical and financial support. The Evernorth CEO highlighted his background in creating products, which enables him and his company to innovate in the DeFi landscape. 

Furthermore, in addition to building products in the XRP ecosystem, the CEO of the XRP treasury company also mentioned that they deploy capital to earn yields through DeFi protocols on the network. As such, he believes that his company stands out from other digital asset treasury companies, since most other DATs focus solely on providing investors with exposure to crypto assets. 

Meanwhile, the CEO of the XRP treasury company stated that, in the long run, Wall Street will reward those who build in the ecosystem and provide yields to investors at the same time. It is worth mentioning that Evernorth just partnered with Doppler to advance institutional liquidity and treasury use cases on the XRP Ledger. Both firms are also exploring structured frameworks for deploying XRP at scale. 

Evernorth is backed by Ripple, which contributed some of its XRP holdings to kickstart the company’s treasury. Birla also praised Ripple, while noting how the company’s acquisitions last year will help push XRP’s institutional adoption. He also highlighted the uniqueness of the XRP Ledger (XRPL), stating that it is well-positioned to meet the DeFi needs of institutional investors. 

Future Plans For Evernorth

Evernorth’s CEO stated that his XRP treasury company plans to build more partnerships, even as it seeks to extend its business model beyond generating yields from DeFi protocols. He hinted that they are already looking to partner with some XRP stakeholders in Japan and South Korea. His company is also working closely with XRP Ledger developers. 

Birla noted that these developers are currently working on institutional lending on the XRP Ledger, and he believes his company could help by deploying capital and generating yields. Based on their roadmap, the Evernorth CEO is confident his company will remain the leading XRP treasury for the foreseeable future. Meanwhile, he predicted that companies with the expertise to build in these crypto ecosystems will be the ones that will stand the test of time, even as he expects some DATs to fail. 

At the time of writing, the XRP price is trading at around $2.08, down in the last 24 hours, according to data from CoinMarketCap.

Crypto.com has launched a fresh rewards campaign inside Airdrop Arena, giving users a new opportunity to earn Solana incentives through simple CRO allocation. The event offers a total pool of US$250,000 in SOL tokens, running from 1 January 2026, 10:00 UTC to 31 January 2026, 09:59 UTC, with boosted point multipliers designed to reward early and active participants.

At the center of the campaign is a points-based system that distributes SOL rewards based on user activity over the event period. To kick things off strongly, Crypto.com is giving the first 10,000 users who allocate CRO an exclusive points boost of up to 120%, which can significantly improve reward outcomes compared to later participants.

Beyond early access rewards, the campaign includes a second incentive layer. Users who purchase at least 1,500 CRO and transfer it into Airdrop Arena may qualify for a daily points boost of up to 120%, as long as the purchase task is completed before allocating CRO.

How to Join the Airdrop Arena Event

Participation is handled entirely inside the Crypto.com app and requires no trading. Users can access Airdrop Arena via the Account tab, the Earn tab, or the Supermenu. Once inside, they simply allocate CRO to begin accumulating points throughout the event period.

The system is structured to stay low-effort. After allocation, points are earned automatically during the campaign, and the SOL reward pool is divided based on each user’s accumulated points total once the event ends.

Reward Distribution and Lockup Conditions

After the campaign finishes, Crypto.com will distribute token rewards within 7 days. Users who activate Loot Locker will receive SOL after the lockup period ends, while others will receive rewards directly into their Crypto Wallet based on standard distribution rules.

Allocated CRO comes with a 6-month lockup period. Once completed, users can withdraw their CRO, or leave it allocated to continue participating in future Airdrop Arena events automatically. This creates a longer-term participation loop, where CRO holders can stay eligible for ongoing platform campaigns without needing to re-enter each time.

Why SOL Rewards Matter in This Campaign

Solana has remained one of the most active ecosystems in crypto, with strong attention from developers and investors due to its speed-focused infrastructure and expanding on-chain activity. By using SOL as the reward asset, Crypto.com increases the campaign’s appeal, since users are earning exposure to a top market token rather than a niche incentive asset.

Pairing CRO allocation with SOL rewards also gives the event a dual-ecosystem angle, connecting Crypto.com’s native token base to broader market demand around Solana.

Airdrop Arena Signals a Push Toward Low-Activity Rewards

This campaign fits into a wider trend across exchanges: rewarding longer-term participation instead of encouraging constant trading. Airdrop Arena focuses on consistency and allocation rather than volume, making it especially attractive for users who prefer passive-style reward structures.

For CRO holders, the event offers a structured way to earn SOL without selling assets or taking on additional trading complexity. For Crypto.com, it strengthens ecosystem engagement and helps build retention through lockups and recurring event mechanics.

Visit Airdrop Arena Allocate now and start building points faster.

Управление по финансовым услугам Дубая (DFSA), главный финансовый регулятор эмирата, запретил использовать в юрисдикции Международного финансового центра Дубая приватные токены. Причиной названы риски отмывания денег, финансовых преступлений и соблюдения режима международных санкций.

Memecoins were hammered last year, and the fallout was huge. According to CoinGecko research, about 11.6 million tokens stopped trading or became inactive in 2025. That number dwarfs previous years and has left investors and market watchers sorting through losses and broken projects.

Memecoin Failures Spike After Major Sell-Off

Based on reports from CoinGecko, roughly 7.7 million token failures happened in the fourth quarter of 2025. That quarter accounted for most of the total, driven by a sharp market move on October 10, 2025, when reports show more than $19 billion in crypto liquidations occurred in a single day.

Small tokens with little liquidity were hit the hardest. Many of those lists of dead tokens were dominated by memecoins and low-effort projects that rarely had active development or real trading depth.

A Flood Of New Tokens Met Weak Demand

Launch tools made it easy to create tokens, and that contributed to the problem. Reports note that platforms which simplified token creation led to a surge in new, cheaply issued coins. When market conditions turned, many of those coins had no buyers left.

In contrast, mainstream tokens with deeper pools of trading and clearer use cases were more likely to survive the shock. CoinGecko compared the scale: around 1.3 million tokens failed in all of 2024, showing how dramatic last year’s collapse was.

What This Means For Traders And Exchanges

Trading activity fell for countless small tokens. Volume dried up fast for poorly backed projects, and price swings became more extreme. Some exchanges and data sites had to update lists and delist tokens that no longer met minimum activity rules. The memecoin sector’s share of speculative trading fell sharply as risk appetite faded and traders moved into assets with more liquidity.

Regulatory And Market Watchers React

Calls for better oversight of token listings grew louder. Some market analysts said exchanges should tighten listing standards and that clearer labels for experimental tokens could help retail buyers avoid traps. Others warned that stricter rules might slow innovation. For now, updates from research platforms are being used to map which tokens vanished and why they failed.

Market Sentiment Remains Fragile

Investors are picking through the wreckage, looking for lessons. A number of small projects were abandoned by teams, and a long list of inactive tokens now serves as a warning to traders chasing hype. Based on CoinGecko’s data, the scale of failures in 2025 is unparalleled in recent years, and it signals that, without buyers and liquidity, newly minted coins can disappear quickly.

Featured image from Phantom, chart from TradingView

В Республике Бурятия полиция задержала пятерых местных жителей, подозреваемых в незаконной добыче криптовалюты. Их ферма была поставлена на колеса — так, по мнению майнеров, ее сложнее отследить.

Управляющий партнер венчурной компании Dragonfly Хасиб Куреши (Haseeb Qureshi) заявил, что одним из главных трендов в криптоиндустрии в наступившем году станут криптокарты на базе стейблкоинов.

Управление финансовых услуг Индонезии (OJK) опубликовало список из 29 криптовалютных платформ, имеющих лицензию на работу в стране. В списке преобладают местные криптокомпании, а крупные мировые биржи для торговли цифровыми активами в него не попали.

Настроения инвесторов и трейдеров вокруг второй по капитализации криптовалюты сейчас напоминают те, за которыми в прошлые периоды следовало ралли монеты, заявил эксперт платформы Santiment Брайан Куинливан (Brian Quinlivan).

Децентрализованные стейблкоины сталкиваются с тремя основными проблемами, одна из которых — курс доллара, считает сооснователь Эфириума Виталик Бутерин. По его словам, чтобы обеспечить долгосрочную устойчивость стабильных криптовалют, их нужно доработать.

Thursday, 8 January 2026 – As 2026 kicks off at full throttle, it’s impossible to overlook the strong “risk-on” signals lighting up markets worldwide. Just look at the Caracas Stock Exchange: Venezuelan equities have gone parabolic, posting a 44x surge since 2024, driven by recent political turmoil and a full-scale market re-rating.

Investors are now chasing high-beta opportunities, but while legacy markets need years to pull off a 44x move, crypto can do it in moments. For those searching for pure, high-octane upside, Maxi Doge (MAXI) is the one project to watch.

Maxi Doge can be viewed as Dogecoin (DOGE) multiplied by 1,000. It represents the most aggressive, most jacked evolution of the original meme coin to date – quite literally. This Shiba Inu isn’t just lifting weights; it’s aiming for a near-vertical move on the charts.

And this isn’t a launch fueled by hype alone. The project runs on the combined conviction of seasoned players who dominate this space. It’s a direct call to every hardcore bro who lives by the code and understands that stocks are simply stonks waiting for ignition.

Time is limited, however. In the next 15 hours, the current MAXI price of $0.0002765 will disappear. The upcoming funding phase sets a higher buy-in, so anyone looking to secure a position before the increase needs to act now.

Venezuelan Stocks Rally, While Meme Coins Show Big Gains Can Come Quicker

Venezuela’s main equity benchmark, the Caracas Stock Exchange, has climbed 172.3% since the start of the year, with momentum accelerating after Venezuelan President Nicolás Maduro was captured by U.S. forces.

Gains in Venezuelan equities have been building since 2024, with some stocks rising as much as 44x. Put into perspective, a $1,000 investment in the index two years ago would now be worth $44,000.

As markets move back into a clear “risk-on” phase, sentiment has shifted sharply. The Fear and Greed Index jumped from extreme fear in December to a neutral reading, signaling that investors are once again actively seeking opportunities across markets to boost returns.

Although a 44x move in equities is uncommon, the crypto market has delivered similar results far more frequently. Consider the original meme coin, Dogecoin (DOGE): from its early January 2021 price to its peak four to five months later, DOGE surged 73.76x, a move achieved 81.5% faster than the recent run of the Caracas Stock Exchange.

DOGE is only one case. Other leading meme coins, including Pepe (PEPE), have also recorded explosive rallies. There are even historical reports of a trader turning $27 into $52 million, representing a 192,592,811.85% return, or a 1,925,926x gain.

Despite their potential for outsized returns, these tokens share common characteristics: strong meme appeal and highly engaged communities that drive momentum. Still, it’s important to note that expecting a repeat of past performance may not be realistic. Many of today’s top meme coins now carry multi-billion-dollar valuations. While upside remains possible, the scale of earlier gains is unlikely to be repeated.

This is where the real opportunity in meme coin hunting emerges. There are still undervalued projects, or tokens that are not yet broadly available to investors, which display similar traits to established names.

One such example is Maxi Doge, currently in presale. Its core DNA closely mirrors that of Dogecoin, but with a key difference: it brings 1,000x more attitude and a far louder, more aggressive presence than the original.

The Evolution of the Beast

Maxi Doge contains all the fundamental ingredients needed for a meme coin with breakout potential. It is upfront about its role as an unrestrained market disruptor, intentionally distancing itself from the rigid, traditional assets typically preferred by conventional investors.

In many respects, it mirrors Dogecoin in its early days, when the original pup openly mocked Bitcoin by poking fun at the very principles its most devoted supporters held dear. Maxi Doge, however, isn’t directing its humor at Bitcoin or even its own predecessor.

Instead, it represents a high-energy extension of the foundation Dogecoin created, redesigned to fit today’s fast-moving, ultra-aggressive crypto environment.

HERE'S MAXI! pic.twitter.com/jowah6kyVk

— MaxiDoge (@MaxiDoge_) December 20, 2025

Think of this built-up pup as the released form of a Dogecoin that stayed dormant for too long. While the original remains iconic, MAXI is the product of endless late nights—investors fueled by Red Bulls and gym sessions until they brought to life an asset capable of pumping with the same intensity DOGE once delivered.

Operating on that shared, rapid-fire mindset, they’ve produced a new version of the OG that loudly signals 1,000x potential to anyone paying attention.

The market response is already evident. While meme coins are driven by memetics, they endure through community strength, and Maxi Doge has quickly assembled a sizable reserve, with investors contributing more than $4.4 million to its presale so far.

The project is fully committed to broad exposure. This phase is only the beginning; with 65% of the total marketing budget allocated to amplifying its presence, it’s only a matter of time before every bro in the crypto space hears the message.

How to Buy MAXI

As Venezuelan oil stocks rally following the recent change in regime, meme coins such as MAXI highlight just how quickly the crypto market can deliver results that take traditional equities years to achieve.

If Venezuelan assets represent the high-beta opportunity within TradFi, then a heavily rebuilt, muscle-packed version of DOGE stands as the nuclear-level alternative for crypto investors.

To take part, join the presale by visiting the official presale page. MAXI can be purchased using ETH, BNB, USDT, or USDC, and buyers also have the option to pay with a bank card.

For storage, Maxi Doge recommends Best Wallet, widely regarded as one of the top crypto wallets available. It’s free to download on both Google Play and the Apple App Store.

Newly acquired MAXI tokens are eligible for a dynamic 70% APY.

Security is also covered. The Maxi Doge smart contract has been fully audited by Coinsult and SOLIDProof, confirming the absence of security issues.

To keep up with announcements and discussions, follow the community on X and Telegram, or visit the Maxi Doge Token website.

Социальный фонд России, отвечающий за управление системой государственных пенсий, сообщил, что в 2025 году вопросы граждан о том, можно ли получать пенсию в криптовалюте, стали одними из самых частых.

Подразделение финансовой разведки Индии (FIU) ужесточит правила регистрации пользователей и прохождение процедуры идентификации клиентов (KYC) на криптоплатформах с целью соблюдения правил борьбы с отмыванием денег (AML).

Финансовая служба Южной Кореи (FSC) собирается разрешить компаниям инвестировать в криптовалюту. Запрет действовал девять лет, с 2017 года — его ввели в качестве меры по борьбе с отмыванием денег.

Популярность криптовалют, связанных с искусственным интеллектом (ИИ), в среде инвесторов растет. Одним из таких проектов в январе 2026 года стал Virtuals Protocol (VIRTUAL).

Charles Hoskinson used a January 9, 2026 video update to outline an aggressive 2026 push that aims to turn Cardano’s DeFi stack into a cross-ecosystem product, explicitly targeting Bitcoin and XRP DeFi integrations alongside Midnight, new bridges, expanded oracle coverage, stablecoin work, and a faster cadence of ecosystem delivery.

2026 Is a Defining Year For Cardano

Broadcasting from Colorado, Hoskinson framed the year as an execution cycle, with Cardano’s “Pentad” integrations effort positioned as the on-ramp for liquidity, users, and what he described as “commercially critical” infrastructure. He said contract signings slowed during the holidays, but insisted the deals were still in motion and would feed into near-term announcements around “bridges and more oracles and stablecoins and analytics,” as well as “more listings.”

The core thesis of Hoskinson’s update was that Cardano can’t win a marginal arms race against other smart contract platforms, and instead needs differentiated features and distribution through interoperability. In his telling, the Pentad structure is meant to ensure Cardano “is no longer an island,” enabling liquidity and users to “flow freely,” and setting up what he called the “next stage after pentad phase one.”

That next stage, Hoskinson said, should focus on upgrading Cardano’s most important applications to reach beyond the chain’s current boundaries. “I’m going to propose that we take the top 15 dabs top 20 dapps we got to figure out a list on Cardano and get them sons of ***** upgraded to Bitcoin DeFi, XRP DeFi and Midnight and also get them tier one listings, get them aboard, get them incubated, accelerated so we can 10x their TVL, their users and their transaction volume,” he said.

He framed this as both an internal ecosystem support plan and a growth strategy built around bringing Cardano-native apps to where large pools of capital and users already sit.

Hoskinson repeatedly returned to privacy, positioning it as the “new experiences” Cardano can ship rather than competing on incremental improvements. He argued that Cardano DeFi won’t be competitive “by being slightly better, slightly faster, slightly cheaper than Ethereum or Solana,” and said copycat strategies fail.

“You beat those guys by doing something that no one’s ever seen before,” he said, before laying out the product concept in unusually direct terms. “And when you add privacy and get private stablecoins, that’s going to be sexy. Show private prediction markets, private DEXes, you’re bringing something new to the conversation. You’re bringing something new to the table, something that people haven’t seen before.”

In Hoskinson’s framing, the pitch is not just privacy on Cardano, but portability of those capabilities across ecosystems once the bridge and stablecoin plumbing is in place, naming Solana, Ethereum, Bitcoin, XRP, BNB, and Avalanche as targets for that distribution.

Happy New Year https://t.co/P3GXCCQdzV

— Charles Hoskinson (@IOHK_Charles) January 10, 2026

2025 Frustration, 2026 Cadence

Hoskinson also used the update to vent about industry expectations and what he called unmet promises from US policy narratives in 2025, arguing the sector needs to refocus on adoption and delivery rather than waiting for validation. He described 2026 as “our year,” and pointed to a schedule of near-term public-facing moments: workshops, a Japan tour, and Consensus Hong Kong where he said Cardano will show “some amazing announcements and special surprises.”

He also previewed a more regimented output rhythm. “And then, the rest of the year, every two months, a bag of goodies comes. That’s the cadence,” Hoskinson said, characterizing it as a “death march” of shipping.

At press time, ADA traded at $0.3953.

According to official releases and news reports, India’s Financial Intelligence Unit (FIU) rolled out tougher Know-Your-Customer (KYC) and anti-money-laundering checks that crypto platforms must use when bringing new users on board.

Based on reports, the rules add live biometric checks, location data capture, and bank-account verification steps designed to cut down on anonymous accounts and suspicious flows.

Live Selfie And Geo-Tagging Required

Reports have disclosed that new sign-up flows must include a live selfie verified by liveness detection — such as eye blink or head movement checks — so a static or doctored photo can’t be used.

Platforms must also record latitude and longitude, the device IP address and a timestamp at the moment a user registers. Those pieces of data will be kept as part of the KYC record, according to coverage by major outlets.

A Penny-Drop To Confirm Bank Ownership

Exchanges are required to carry out a so-called penny-drop — a nominal ₹1 transfer — to confirm the customer actually controls the linked bank account. Users must supply PAN plus a secondary government ID such as Aadhaar, passport or voter ID, and verify phone and email addresses with OTPs. These steps are intended to tighten the link between identity and on-chain activity.

Enhanced Ongoing Checks And Reporting Duties

Exchanges must refresh KYC every year for ordinary users and every six months for clients flagged as higher risk. Reporting duties have been stepped up: platforms will register as reporting entities with the FIU under the Prevention Of Money Laundering Act (PMLA) and file suspicious transaction reports when triggers are hit. Based on industry commentary, that will raise compliance costs and slow down onboarding for new retail customers.

Market And User Impact

Industry participants told reporters that the new steps are likely to increase the time it takes a user to open an account and will push up operational costs for platforms that must integrate biometric and geolocation systems. While regulators say the measures aim to block illicit finance, some retail investors may find the process harder to complete, which could affect volumes in the near term.

According to sources, the FIU expects exchanges to implement these checks promptly and to keep records for audit. Failure to comply could invite action under PMLA rules. Observers say the move aligns India with stricter global KYC norms and signals that regulators plan active oversight as crypto use grows.

Featured image from Unsplash, chart from TradingView