Binance Tightens KYC in India Amid AML Compliance Push

Binance has implemented stricter Know Your Customer (KYC) procedures for its Indian users, following previous violations of the country’s anti-money laundering (AML) laws. Announced on April 18, the move is part of the exchange’s broader compliance strategy and aims to align with India’s financial regulations.

Users in India are now required to re-verify their identity by submitting updated documents, including their Permanent Account Number (PAN)—a mandatory 10-character alphanumeric code issued by the Income Tax Department for financial transactions. Binance clarified that this re-verification is not exclusive to its platform but applies to all crypto exchanges operating under Indian AML laws.

The exchange emphasized that user information remains secure and that only legally required data will be collected to combat financial crime and ensure a safe crypto ecosystem. Binance’s renewed compliance push follows increasing regulatory scrutiny in India, particularly regarding tax obligations and AML enforcement.

Earlier in 2024, India’s Financial Intelligence Unit (FIU) fined Binance ₹188.2 million (around $2.2 million) for non-compliance. The government also removed Binance’s app from Apple’s App Store in India. Despite these challenges, Binance has since registered with the FIU and is working to rebuild regulatory trust.

Additionally, India’s Income Tax Department is reportedly investigating whether users exploited the platform to bypass the 1% Tax Deducted at Source (TDS) requirement on crypto trades. Under current law, users must provide proof of TDS payment or applicable exemptions to remain compliant.

With this updated KYC process, Binance signals its commitment to adhering to Indian financial regulations, enhancing user protection, and regaining confidence from both regulators and its user base.