- Binance enforces PAN verification for Indian users as part of KYC re-verification.
- KYC update ensures Binance goes hand-in-hand with India’s strict AML regulations.
- Failure to re-verify by the deadline could lead to the restriction of user access to funds.
Binance warned users to regularly update their wallets and security software to prevent malware and scam attacks. Recently, Binance recovered the funds of a user who lost them to a scam. Lured by a fake mentor trader, a Pakistani user lost his USDT but later retrieved it with the support of Binance.
Likewise, to safeguard users from such scammers, Binance initiated a re-verification process for all its users in India to enhance wallet security. Announced on Friday, the rule mandated that all new and existing users submit their Permanent Account Number (PAN) details as part of the re-verification process.
This measure is part of Binance’s broader strategy to enhance account security and stay ahead of global compliance standards. The re-verification process aligns with India’s strict Anti-Money Laundering (AML) laws, which now require PAN verification as part of KYC compliance. Users were instructed to complete the process by April 20, 2025, or face restrictions on trading and withdrawals.
Binance Strengthens Compliance with India’s AML Laws
The announcement comes after Binance successfully registered with India’s Financial Intelligence Unit (FIU-IND) in August 2024. Binance’s registration marked its commitment to adhering to India’s AML regulations and enhancing transparency. The exchange also stated that it has consistently aimed to improve and stay ahead of global compliance standards by implementing such measures.
Further, Binance added that the requirement is not unique to Binance and equally applies to all local and international exchanges registered under India’s AML legislation. By mandating PAN details as part of the KYC process, Binance ensures that it complies with India’s stringent regulations to prevent financial crimes such as money laundering and fraud. The exchange emphasized that the personal information would be stored securely and used only for regulatory purposes.
Related: Binance Takes Center Stage in Shaping Global Crypto Frameworks
A Step Toward Crypto Legitimacy in India
This move is significant, as it marks a broader trend among crypto exchanges toward full regulatory compliance. According to 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.” Binance’s compliance with the Indian government’s regulations is a step forward in legitimizing the crypto industry in the country.
In the past, Binance faced regulatory challenges in India, including a tax bill of $86 million. Following these issues, the company has worked hard to comply with local laws. The exchange also faced scrutiny over its KYC processes, which were deemed deficient by regulators.
This re-verification initiative reflects Binance’s efforts to rebuild trust and ensure long-term regulatory alignment. While this change applies specifically to Binance, other exchanges registered under India’s AML regulations must follow suit, marking the beginning of a more regulated and transparent future for India’s crypto ecosystem.
