Binance Reveals New KYC rules for Indian users

New KYC rules for Indian users have been issued by cryptocurrency exchange Binance. In addition to enhancing account security for its Indian user base, the exchange said the latest update is a part of its attempts to “improve and stay ahead of global compliance standards.”

This comes after the company successfully registered with India’s Financial Intelligence Unit (FIU) in August 2024 as a reporting entity. Additionally, it is the exchange’s 19th regulatory success globally.

PAN verification is another criterion for Binance compliance.

The exchange has implemented a mandatory Know Your Customer (KYC) re-verification requirement for all of its Indian users as part of an effort to strengthen security. Users will be asked to submit their Permanent Account Number (PAN) information by Binance.

The Income Tax Department of India provides people, businesses, and financial institutions involved in financial transactions with a unique 10-character alphanumeric identity known as the PAN. The exchange is obliged by Indian anti-money laundering laws as a registered entity, and this is exactly in line with those laws.

This requirement “is not unique to Binance and equally applies to all local and global exchanges registered under India’s AML legislation,” the cryptocurrency exchange stressed in its announcement. Users were reassured by the exchange that their information would be “safe and secure” and that it would only request information needed to combat financial crime under Indian AML regulations.

Users who were affected began receiving emails from the company with clear instructions to re-verify their credentials. In early 2024, India outlawed the exchange along with eight other international platforms.

The country in question is worried about investor protection, inadequate KYC compliance, and the potential of money laundering. These earlier regulatory issues seem to be directly addressed by the current re-verification rules.

A regulatory milestone follows past challenges in the Indian market.
Following a complex history with Indian regulators, Binance recently took efforts to comply with the rules. In August 2024, the top cryptocurrency exchange registered with the Financial Intelligence Unit (FIU).

After problems with regulators earlier in the year, this was a big step forward. Additionally, India blasted the exchange with a tax bill of $86 million.

Several regulatory concerns led to the prior suspension. This includes possible money laundering risks, poor investor protection safeguards, and what regulators have called weak Know Your Customer processes.

The exchange’s expanding global list of regulatory certifications is bolstered by its registration with India’s FIU. The exchange’s 19th worldwide regulatory milestone was its registration with India. Binance seems to be making a concerted effort to uphold its recently established regulatory standing in India by enforcing these more stringent KYC criteria for Indian consumers.

 

 

 

 

 

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