Binance Rolls Out Mandatory KYC Re-Verification for Indian Users to Strengthen AML Compliance
Binance, the world’s largest cryptocurrency exchange by trading volume, has announced a mandatory Know Your Customer (KYC) re-verification for all users in India. The move is part of a broader effort to align with India’s stringent anti-money laundering (AML) regulations and reinforce its commitment to a compliant digital asset ecosystem.
The update, shared on April 18, applies to both new and existing users. As part of the process, users must resubmit identification details, including their Permanent Account Number (PAN)—a key document issued by the Indian Income Tax Department for financial activities.
“Users in India may need to re-verify their KYC details, including linking their PAN,” Binance stated on X (formerly Twitter). “This is as per the Indian anti-money laundering (AML) laws, and these requirements equally apply to all exchanges in India.”
Binance clarified that the measure is not specific to its platform but part of a nationwide push for tighter crypto oversight. It assured users that the re-verification process would only request information required under Indian AML law, with robust protections in place to safeguard user data.
This policy shift arrives as Indian regulators heighten scrutiny over cryptocurrency exchanges operating in the country. Authorities are particularly focused on ensuring compliance with tax regulations and AML frameworks. The Indian Income Tax Department is reportedly investigating whether users have exploited platforms like Binance to circumvent the 1% Tax Deducted at Source (TDS) on crypto transactions.
Under local law, crypto traders must provide evidence of TDS payments or valid exemption documentation. Failure to do so can result in penalties and increased regulatory oversight.
The move also follows Binance’s earlier regulatory hurdles in India. In 2024, the Financial Intelligence Unit (FIU) fined the exchange ₹188.2 million (approximately $2.2 million) for non-compliance with AML standards. Subsequently, Binance’s app was delisted from Apple’s App Store in India.
Since then, Binance has taken active steps to rebuild trust with both regulators and users. It completed its registration with the FIU and has been working to enhance its compliance mechanisms.
The introduction of mandatory KYC re-verification marks another step in that journey, signaling Binance’s intent to not only meet Indian regulatory standards but also to solidify its standing in one of the world’s most promising crypto markets.