A layer 2 side chain, Polygon will now require Know Your Customer (KYC) details in order to offer funding, investments, grants or financial support to potential partners in India, as per a source familiar with the matter.
Polygon’s system runs alongside the Ethereum blockchain, and is seeking to be “extremely compliant”, according to the source, as there is increased inspection from regulators.
The source revealed that there would not be any grants to anyone who is unwilling to share their full KYC details.
“Anybody legit should not be reluctant to share KYC details and therefore to avoid procedural delays. It’s a requirement going forward,” the source added.
A separate industry source claimed that developers in India have in recent times been commenting about the difficulty of getting funding or investment from Polygon. Moreover, developers have gone on to say that Polygon had stopped funding projects in the country altogether.
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Anyhow, a source affiliated with Polygon’s decision has clarified that the move is not a complete pause on funding of Indian projects but rather it is related to increased government scrutiny.