Crypto exchange Binance has announced new KYC guidelines for its Indian users. The exchange stated that the new update is part of its efforts to “improve and stay ahead of global compliance standards” while improving account security for its Indian user base.
This follows the firm’s successful registration as a reporting entity with India’s Financial Intelligence Unit (FIU) in August of 2024. Besides, it marks the exchange’s 19th regulatory achievement worldwide.
Binance compliance requirements also include PAN verification
As part of a move to tighten security, the exchange has added a compulsory Know Your Customer (KYC) re-verification requirement for all of its Indian users. Binance will request users to provide their Permanent Account Number (PAN) details.
The PAN is a unique 10-character alphanumeric identifier, which is provided by India’s Income Tax Department to individuals, companies, and financial institutions engaged in financial transactions. This is precisely in accordance with Indian Anti-Money Laundering legislation to which the exchange, as a registered entity, is bound.
In the crypto exchange’s announcement, it emphasized that this requirement “is not unique to Binance and equally applies to all local and global exchanges registered under India’s AML legislation.” The exchange assured users that these details will be kept “safe and secure” and that it will “only ask for details required under Indian AML laws for the prevention of financial crime.”
The company started sending emails to impacted users, giving them direct instructions to re-verify their accounts. India banned the exchange and eight other foreign platforms in early 2024.
The nation in question is concerned with money laundering risk, insufficient KYC compliance, and issues with investor protection. The new re-verification regulations appear to address these previous regulatory concerns head-on.
Regulatory milestone comes after earlier difficulties in Indian market
Binance’s recent action to abide by the regulations follows a complicated history with Indian regulators. The leading crypto exchange was registered with the Financial Intelligence Unit (FIU) in August 2024.
This was a significant development following issues with regulators earlier in the year. India had also slammed the exchange with an $86 million tax bill.
The previous ban stemmed from multiple regulatory concerns. This includes what authorities described as inadequate Know Your Customer procedures, potential money laundering risks, and insufficient investor protection measures.
The registration with India’s FIU adds to the exchange’s growing list of regulatory approvals worldwide. The registration with India was the exchange’s 19th global regulatory milestone. By implementing these stricter KYC requirements for Indian users, Binance appears to be taking strong steps to maintain its newly established regulatory standing in India.
The post Binance Reveals Major Update For Indian Users: Details appeared first on CoinGape.