The Ministry of Electronics and Information Technology (MeitY) proposed an amendment in the Information Technology Rules, 2021, that requires online gaming intermediaries to do a proper user verification during the account registration in the draft rules for online gaming.

Recent updates from people with knowledge about the situation suggest that MeitY is likely to move forward with this approach and implement proper know-your-customer (KYC) norms for all online gaming platforms according to Business Standard.

Platforms must make tools like a video-based customer identification process to comply with a comprehensive KYC requirement. While many gaming firms have asked for a one-time password and a self-declaration of name and identity number of any “required document” for deposits up to 10,000.

According to the companies, the ministry should implement KYC procedures that follow the RBI’s master guidelines for small prepaid payment devices.

A senior official said, “the KYC requirement will be the same as the RBI prescribes. We don’t want to create any additional requirement for KYC.”

To date, many people, including gamers, industry stakeholders, teachers, law firms, industry bodies and parents, have given their feedback on the draft online gaming rules released by MeitY. With the amount of feedback, the final draft by MeitY is also shaping up and is expected to make public soon.

MeitY also revealed that the gaming intermediaries must be registered with a self-regulatory organization (SRO). These SROs will not allow any intervention from industry bodies.

Minister of State (MoS) Rajeev Chandrasekhar said, “We are going by the principle of accountability and transparency. The government will certainly not allow the industry to hijack the SRO,” during a consultation meeting with parents, students and educationists.

According to the rules, an online game currently is any game that is provided via the internet and that a player can access through a computer resource in exchange for a deposit and the hope of winning money. Further, a proper definition of online gaming may also be in the works.