Generally, for KYC verification at banks, either customer has to visit the bank branch or bank executive visit the customer for paperwork. But, Bitcoin exchanges in India are verifying customers online. I wonder HOW?
User's Photo, Aadhar No. (with scanned copy of Aadhar card), PAN No. (with scanned copy of PAN card), Mobile No. (verified with SMS/Call) and Bank A/C No. are taken. But, how is it verified that the given Photo, Aadhar No. & PAN No. correspond to the given Mobile No. & Bank A/C No.?
What I meant to say is can not identity theft be an issue to these exchanges?
Most of the popular exchanges ask various information and documents for KYC and it is not possible for anyone to get access of all these documents of any other person.Moreover name on Bank account should match with the documents provide so in any case the amount is deposited to the linked Bank account which was KYC verified