Binance Re-verifies Indian KYC
Binance Mandates KYC Re-verification for Indian Users
Binance, the world's largest cryptocurrency exchange by trading volume, has implemented a mandatory KYC (Know Your Customer) re-verification process for all its Indian users. This applies to both existing and new users and is in response to India's anti-money laundering (AML) regulations.
Increased KYC Scrutiny in India
Announced on April 18, Binance stated this re-verification is part of a broader effort to enhance user security and meet global regulatory standards. Users must submit updated identity documents, including their Permanent Account Number (PAN), a crucial identifier for financial transactions in India.
"Users in India may need to re-verify their KYC details, including linking their PAN. This is as per Indian anti-money laundering (AML) laws, and these requirements apply to all exchanges in India," Binance stated on X.
Binance assures users that their data is secure and that only information required under Indian AML laws will be collected to prevent financial crimes and support a secure cryptocurrency ecosystem. The exchange emphasizes that this requirement aligns with national AML laws and is not specific to Binance.
"This requirement is not unique to Binance and equally applies to all local and global exchanges registered under India’s AML legislation," the firm added.
Regulatory Scrutiny and Compliance
This move comes amid increased regulatory scrutiny of cryptocurrency platforms in India. Indian authorities are actively cracking down on exchanges that don't meet compliance requirements, especially regarding tax reporting and AML practices. The Income Tax Department is investigating potential tax evasion through Binance, focusing on whether users have been evading the 1% Tax Deducted at Source (TDS) on crypto transactions.
Indian law requires traders to provide proof of TDS payment or documentation for any exemptions. Binance's actions follow a ₹188.2 million (approximately $2.2 million) fine imposed in 2024 for AML violations. Despite past challenges, Binance successfully registered with the FIU last year and continues to work towards full regulatory compliance.
This re-verification process demonstrates Binance's commitment to complying with Indian financial regulations and rebuilding trust with users and regulators. At Codeum, we understand the importance of robust KYC/AML compliance and offer comprehensive solutions for blockchain businesses needing to navigate complex regulatory landscapes. Our services include KYC verification, smart contract audits, and custom smart contract development to ensure the security and compliance of your blockchain projects.