As the country’s regulatory scrutiny grows, Polygon is establishing tougher consumer information for any possible collaborations for legal businesses based in India.
The Layer 2 (L2) side chain now requires extensive Know Your Customer (KYC) information, according to a source with credible information on the subject. Polygon is now imposing this policy for any potential investments, grants, money, or financial support to Indian partners, he stated.
Every day, the Indian market becomes increasingly interested in cryptocurrencies and blockchain technologies. Various government organizations, on the other hand, have their own distinct perspective on bitcoin, which they are particularly adamant about. In India, most government officials see cryptocurrencies as a big ocean of value and a great way to tax them. This was claimed by Sandeep Nailwal, one of India’s most powerful entrepreneurs, who now lives in Dubai.
Nailwal noted that because multiple government entities are now participating in the burgeoning bitcoin sector, none of them is focused on really comprehending the notion of cryptocurrencies. As a result, the Indian government needs a broad understanding of cryptocurrencies.
Polygon, which is based on the Ethereum blockchain, has been enforcing stringent KYC procedures in order to maintain tight compliance with Indian regulations. According to the source, any individual or legal company that does not give comprehensive KYC information will not receive any financing or financial assistance from the side chain.
Furthermore, the individual stated that this should not be a tough effort for people who are genuine. As a result, they should continue to supply their KYC documents and information.
Polygon has been criticized for making it difficult for Indian and Indian-based creators to obtain financing, collaborations, or investments. According to another insider, the situation grew so bad that the Layer 2 side-chain stopped supporting initiatives in India.
The source, on the other hand, noted that the financing freeze isn’t due to Polygon’s strictness, but rather to government rules and increasing monitoring.
The Indian government has implemented strict cryptocurrency restrictions and taxation. Following the crypto market‘s downturn due to the crypto tax, certain rules are strict crypto taxes that do not promote the crypto business.
Polygon is a Layer 2 side chain that allows other blockchains to join and scale with it. It provides a network via which users may communicate and interact with multiple blockchains at a quicker and less expensive rate than Ethereum. The MATIC native token is used by Polygon for utility, governance, and payment processing.
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