Binance KYC Update: PAN Card Now Mandatory for Indian Users

Binance KYC Rules Tighten as India Requires PAN Verification

Binance, one of the biggest crypto exchanges, announced a new policy for Indian users. The users need to submit their PAN card for the process of re-verification. This variation is a part of the platform’s strategy to abide by the (AML) anti-money laundering laws of India and enhance the safety of users' accounts.  

The PAN (Permanent Account Number) is a 10-digit code issued by the Income Tax Department of India. It is used by people and organisations in the process of tax filing and monitoring monetary transactions. The exchange is now allowing users to verify their identity by sharing the PAN number. The user can lose their respective accounts if they are not able to complete the re-verification process. 

The company started sending emails to account holders with clear steps on how to re-verify. The exchange says this rule is not just for them; every crypto platform registered under India’s AML laws must do the same. They also promised that the user data, including PAN details, will be kept safe and private.

This Comes After Trouble in Early 2024

This new rule by the exchange has arrived after a challenging phase with Indian regulators. In early 2024, India banned the platform and eight different foreign exchanges from operating in the country. The administration said these platforms are not abiding by the KYC rule of the country. Also, they have crucial loopholes in safeguarding users and restricting illicit activities. 

In August 2024, the platform again started operating after getting officially registered with the FIU (Financial Intelligence Unit). It transformed Binance into a reporting body as per Indian Law. It was a crucial step for the platform after dealing with a $86 million tax notice from the Indian regulators. The organisation seems to be making efforts to remain compliant.  

Binance Wants to Show It Can Be Trusted

By requiring PAN verification, Exchange is trying to show users and regulators that it wants to do things the right way. The company said this step will help prevent financial crime and make the platform safer for everyone. 

Binance also pointed out that this new rule is part of its effort to keep up with global compliance standards. India is now the 19th country where Binance has reached a regulatory milestone. The company wants to build trust not just in India, but all over the world.

What Should Indian Users Do Now?

If you're using Binance, time to check your inbox and complete the re-verification process as guided. The individual just needs their PAN card. If you do not do this, you might see restrictions on the account or even lose access.

This update may seem like an annoyance, but it indicates that Binance cares to address issues from the past and ensure that the funds are secured. It's also a tell that India is cracking down harder on crypto sites to shield investors and prevent misappropriation.

Indian users for the time being should do the re-verification and remain aware of any further modifications.