Polygon Increases KYC Scrutiny of Potential Investments and Grants in India

Polygon is now requiring comprehensive customer details for prospective partners in India as regulatory scrutiny there grows, according to a source. 

Polygon Increases KYC Scrutiny of Potential Investments and Grants in India

Layer 2 side-chain Polygon is requiring extensive KYC information to provide funding, investments, grants, or financial support to potential partners in India said a person familiar with the matter. 

A polygon whose system operates alongside the Ethereum blockchain is looking to be "extremely comploant," according to the person at a time when there is increased scrutiny from regulators. 

The person stated that "there would be no grants to anyone who is unwilling to share full KYC details"

"Anybody legit should not be hesitant to share KYC information and tehrefore to avoid procedural delays. It's requirement going forward." 

Developers in India have recently been talking about the difficulty of acquiring funding or investment from Polygon, going as far as saying Polygon had altogether stopped funding projects in the country, said a separate industry source. 

The source familiar with Polygon's decision explained that the move is not a complete pause on funding to Indian projects but is related to increased government scrutiny. 

Crypto moves by Indian authorities have included imposing a stiff new crypto tax, cutting off payment processors from local exchanges after the rough local launch of crypto exchange Coinvase, falling to support the industry after a plunge in trading volumes, and moving ahead with a new crypto tax -a1% deducted at source levy scheduled to begin on July 1.

Read: Indian Government in Talks With IMF, World Bank, RBI, SEBI on Crypto Policy