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India Wants FATF To Bring Online Gaming Companies Under Strict Framework

India is pushing for stricter norms for online gaming companies at the Financial Action Task Force (FATF), a global organisation formed to combat various financial crimes, including money laundering and the financing of terrorism. 

What India wants from FATF

India is pushing to bring online gaming companies under the anti-money laundering and financing of terrorism framework. This would require gaming companies to comply with stricter KYC norms and accelerate the reporting of any suspicious financial and transactional activity. According to a report in Hindustan Times, the government is convinced criminals and terrorists can misuse gaming online gaming platforms and should be under a global ambit.

The Government vehemently states that this is not to muzzle the nascent market but to make it safer and, therefore, more lucrative for players, both individuals and businesses, looking to enter it. The risk of people falling for online scams has long existed, so a KYC addition will only make the online world a safer place. 

The Indian Government is examining the financial aspects of online gaming apps with a magnifying lens. According to the government, there should be more clarity about the entities and individuals who make financial transactions on online gaming platforms. One way of doing this is to activate stringent Know Your Customer (KYC) features while setting up accounts on the said platforms.

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Also Read: Prime Minister Modi’s Third Term To Be Beneficial For Online Gaming?

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Strict KYC norms are becoming common in India, with the financial landscape changing drastically. All financial apps that allow individuals to invest in shares require completing the KYC process. Some fintech apps have users ensure that they pay only through the bank account that they have added to the system, even if multiple accounts are connected to a single UPI account.  In India, an Aadhar Card and a PAN Card addition generally fill the KYC requirement of a website or any such organisation that requires it.

The Indian authorities seem to be warming to the gaming scene. Earlier, Prime Minister Narendra Modi gave a clarion call, saying that the next big thing in gaming should come from India. Earlier this year, India’s top gamers met the Prime Minister, and a video of the meeting was then streamed on the Prime Minister’s official channel. The Prime Minister played both VR and traditional games with the team, boosting the gaming community in India, and projecting a positive face for the industry.

India’s PM Narendra Modi interacts with Gamers

India has a small but passionate gaming scene. Several people game from home and visit gaming parlours over the weekend. The scene has its fair share of risks, but they’re not much different from the risks of being online. 

With the Government keen on bringing online and real-money gaming under various ambits, it remains to be seen whether it will be positive for the industry or will hinder its growth. There’s already an ongoing conversation in India about the 28% GST charge that the companies face.

Gutshot Magazine has a finger on the online and real money gaming pulse, national and international. For more updates, keep reading GutshotMagazine.com. Follow us on Facebook, Instagram, Twitter and Telegram

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