Binance is refreshing the database of its user details in India, the exchange said in an official announcement over the weekend. Binance’s India users have been directed to re-verify their Know-Your-Customer (KYC) details. This instruction will apply to both the new as well as the existing users of the exchange. Access to Binance was restored in India in August 2024, after it cleared a fine of $2.25 million (roughly Rs. 18.8 crore) for violating India’s Prevention of Money Laundering Act, 2002 (PMLA).
Binance informed its India users about the re-verification process through an email, it said in its announcement. The exchange said that the step aligns with its aim to maintain high security standards in the country.
The platform will be obtaining the PAN details of its users in India as part of this KYC refreshing process. PAN or (Permanent Account Number) is a 10-digit identification number assigned to all taxpayers in India.
Explaining the step, Binance said that it is “a requirement under the Indian AML laws” which “is not unique to Binance and equally applies to all local and global exchanges registered under India’s AML legislation.”
Other details that users will need to submit for their KYCs include name, date of birth, address, and images of government-issued ID. In addition, users will also be required to go through a facial identification process.
In 2024, Binance had ensured its users that uploading the necessary documents for the KYC was a quick process – the verification and approval process could take a few days. Once the verification is completed, the platform notifies the users accordingly.
Binance has assured its India users that it will keep their personal details safe and secure.
“We will only ask for details required under Indian anti money laundering laws for the prevention of financial crime and the development of a safe and responsible digital asset ecosystem,” the exchange noted.
In India, all crypto platforms are mandated to adhere to the anti-money laundering guidelines. As part of India’s PMLA laws, crypto exchanges need to have the KYC details of their users to keep an oversight on crypto trading activities. Upon identifying suspicious transactions, the PMLA requires exchanges to report their observations to the relevant authorities.
Last year, Binance CEO Richard Teng had said that the company recognised the vitality and potential of India’s thriving virtual digital assets (VDAs) market. The exchange also completed its registration with the Financial Intelligence Unit of India (FIU-IND) in May last year.
It is, however, noteworthy that Binance is yet to establish a physical presence in India.
