The Indian Ministry of Electronics and Information Technology (MeitY) is getting ready to put in place the right know-your-customer (KYC) rules for online gaming platforms. Online gaming intermediaries must verify users during account registration, according to a recent MeitY amendment to the Information Technology Rules, 2021. The decision was made as the nation’s online gaming market expanded quickly and gave birth to unicorns like Dream11, MPL, and Games24X7.
To meet the thorough KYC requirement, gaming platforms must offer tools like a video-based customer identification process. For deposits of up to $10,000, many gaming sites have asked for a one-time password and a self-declaration of name and ID number on any “required document.” They have asked MeitY to follow the Reserve Bank of India’s (RBI) master guidelines. For small prepaid payment instruments (PPIs), and MeitY is likely to agree. The companies say that the ministry should set up KYC procedures. That follow the general suggestions made by the RBI for small prepaid payment devices. Senior government official: “The RBI’s prescribed KYC requirements will apply as well. “We don’t want to add any new requirements to the KYC process.” MeitY also disclosed that gaming intermediaries needed to register with a self-regulatory body.
State Minister Rajeev Chandrasekhar said, “Accountability and transparency are our guiding principles. The government will certainly not allow the industry to hijack the SRO, “during a meeting for consultation with educators, parents, and students. MeitY has received “a decent amount of feedback” on the proposed amendments from businesses, law firms, trade associations, and civil society organizations.
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The final draught is anticipated to be released soon. After the Center designated MeitY as the nodal ministry to oversee the online gaming sector. MeitY released the draught amendments to the IT Rules. Currently, any game offered over the internet defines online games. That a player can access through a computer resource in exchange for a deposit and the expectation of winning money. A definition of online gaming may also be in the works. MeitY is probably going to continue with the implementation of KYC standards for all online gaming platforms. As India’s online gaming market is expanding rapidly, they are taking this action.
