India, Jan. 12 -- India's Financial Intelligence Unit (FIU) has updated protocols for cryptocurrency exchanges to improve anti-money laundering (AML) and KYC measures in an effort to curb illegal activities in the crypto sector.

The updated guidelines include mandatory live detection through selfies and geo-tracking during the onboarding process, along with additional compliance measures for crypto exchanges.

While the move was welcomed by many industry players as a sign of strengthening regulations to boost retail investor confidence, others said that the costs of complying with these guidelines will hinder the growth of crypto startups.

"Exchanges will face higher operational and compliance costs due to enhanced verification, monitor...