tl;dr
Binance, the largest crypto exchange by trading volume, has implemented mandatory KYC re-verification for all users in India to comply with local anti-money laundering (AML) laws. Users must submit updated identity documents, including their Permanent Account Number (PAN). This move aligns with nati...
Binance, the world’s largest cryptocurrency exchange by trading volume, has mandated mandatory KYC re-verification for all its users in India, requiring updated identity documents, including the Permanent Account Number (PAN). This move aims to comply with India’s anti-money laundering (AML) laws and bolster security within the digital asset ecosystem.
This KYC update aligns with a broader regulatory crackdown in India targeting crypto platforms, emphasizing stricter AML and tax compliance. Indian authorities are investigating Binance users for potential evasion of the 1% Tax Deducted at Source (TDS) on crypto transactions, necessitating traders to submit proof of TDS payment or appropriate exemptions documentation.
Binance’s enhanced compliance follows a ₹188.2 million (approximately $2.2 million) fine imposed in 2024 by India’s Financial Intelligence Unit (FIU) for AML non-compliance, alongside the mandated removal of Binance’s app from Apple’s App Store in India. Since then, Binance has registered with the FIU, signaling a concerted effort to rebuild regulatory trust and align fully with Indian financial regulations.
The exchange has stressed that the KYC re-verification process is not unique to Binance but applies to all exchanges operating under India’s AML legislation, aiming to prevent financial crime and support a safe, responsible digital asset environment. Binance assures users that personal data will remain secure, and only information required by law will be collected.