Binance Just Ignited a Compliance Revolution in India's Crypto Market

Crypto exchange Binance announced a policy update on April 18 mandating know your customer (KYC) re-verification for all users in India, regardless of when they joined the platform.

Binance is enforcing full know-your-customer (KYC) re-verification for all users in India as part of ongoing efforts to align with anti-money laundering (AML) laws and prioritize user accountability. The announcement, made on April 18 via email and a blog post, will see existing users required to resubmit KYC documents, despite prior verification on joining the platform.

The exchange detailed the legal and regulatory basis for the decision, highlighting its alignment with Indian authorities:

As part of our ongoing efforts to comply with applicable anti-money laundering (AML) regulations and internal policies, we are making some changes to our KYC procedures.

Accordingly, all users in India, both new and existing, need to undergo their know your customer (KYC” ) re-verification.

In terms of user data protection, Binance noted that it will only collect necessary data from customers and will handle it with the highest security standards. The company also stated its commitment to “the prevention of financial crime and the development of a safe and responsible digital asset ecosystem.”

This new development comes as the regulatory environment in India continues to evolve, compelling all registered platforms—foreign or domestic—to collect PAN details from users. Binance explained the purpose of this requirement and its official compliance status:

Binance is registered with the Financial Intelligence Unit-India and adheres to Indian AML legislation. This includes obtaining your Permanent Account Number (PAN) details as part of our KYC process, which is a requirement under the Indian AML laws.

India’s Permanent Account Number (PAN) is a unique 10-character alphanumeric identifier issued by the Income Tax Department to individuals, businesses and entities engaged in financial transactions.

This requirement is not unique to Binance and equally applies to all local and global exchanges registered under India’s AML legislation.

The clarification aims to highlight the measure as part of a broader regulatory framework, not a Binance-specific imposition. It is part of broader efforts by the exchange to align fully with Indian legislation. Earlier this year, Binance announced the integration of SEPA bank deposits for its European users.