Binance, the leading cryptocurrency exchange globally in terms of trading volume, has mandated a Know Your Customer (KYC) re-verification process for users in India. This requirement, applying to both new and existing users, is in line with local anti-money laundering (AML) regulations. The exchange aims to enhance user security and adhere to international regulatory standards through this initiative announced on April 18.
As part of the process, users are required to submit updated identity documents, including their Permanent Account Number (PAN), a 10-character alphanumeric code mandated for financial transactions in India by the Income Tax Department. Binance clarified that the re-verification is essential to comply with Indian AML laws and is not unique to its platform.
Binance assured users of the safety and security of their information and reiterated its commitment to requesting only necessary details as per Indian AML laws to combat financial crimes and uphold a secure digital asset environment. The exchange emphasized that similar requirements are applicable to all exchanges, both local and global, registered under India’s AML legislation.
The enhanced KYC procedures by Binance align with increased regulatory scrutiny faced by cryptocurrency platforms in India. Authorities are intensifying efforts to ensure compliance, particularly regarding tax reporting and AML practices. The Income Tax Department in India is investigating potential instances where Binance users may have avoided the 1% Tax Deducted at Source (TDS) on crypto transactions, with traders mandated to provide proof of TDS payment or relevant exemptions documentation as per Indian laws.
With Binance having faced regulatory issues in the past, including a significant fine in 2024 for AML shortcomings, the exchange is emphasizing its commitment to compliance by implementing this re-verification process. This move reflects Binance's dedication to adhering to Indian financial regulations and rebuilding trust with users and regulators alike, following previous setbacks.