Binance has made an important announcement pertaining to user information in India, asking all the users to re-verify the Know-Your-Customer (KYC) data. It is applicable both for new as well as the existing users on the platform. Access to the Binance account was restored in India in August 2024 after paying a fine of $2.25 million for defying the Prevention of Money Laundering Act, 2002 (PMLA).
The move informed this re-verification process to its Indian users via email, reaffirming its commitment to maintaining high security standards within the country. As part of the KYC refresh, Binance will require users to enter their Permanent Account Number (PAN), a 10-digit identification number that is assigned to all Indian taxpayers.
Binance said that the requirement is in line with Indian anti-money laundering (AML) laws and will be implemented on all exchanges dealing under these laws, both domestic and foreign. Users will need to give additional information, including their name, date of birth, address, and photographs of government IDs. A facial recognition procedure will also be part of the process.
In 2024, Binance ensured that the KYC uploading experience was efficient, with processing and approval completed within a matter of days. Users receive notices upon verification.
The exchange has reconfirmed its promise to safe-guard user data, stating, “We will only ask for information required under Indian anti-money laundering laws for preventing financial crime and the building of a safe and responsible digital asset environment.”
According to India’s PMLA, every cryptocurrency platform needs to comply with AML principles such that KYC details need to be collected in order to monitor trading patterns. The act necessitates reporting of suspicious transactions to the requisite authorities.
The potential of India’s expanding virtual digital assets (VDAs) market was highlighted last year by Binance CEO Richard Teng, and the exchange completed its registration with the Financial Intelligence Unit of India (FIU-IND) last May. However, it should be noted that Binance has not established a physical presence in the country yet.
