Binance Mandates KYC Re-Verification For Indian Users Amid Tax & Security Concerns

Stricter KYC and TDS requirements on Binance signal a wider push for compliance across all crypto platforms in India. Growing cyber threats in the sector underscore the need for robust security and proactive risk management.

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Meghna Chowdhury
Meghna Chowdhury
Meghna is a Journalism graduate with specialisation in Print Journalism. She is currently pursuing a Master's Degree in journalism and mass communication. With over 3.5 years of experience in the Web3 and cryptocurrency space, she is working as a Senior Crypto Journalist for UnoCrypto. She is dedicated to delivering quality journalism and informative insights in her field. Apart from business and finance articles, horror is her favourite genre.

Binance told users in India to re‑verify their accounts. The update aims to boost security and meet anti‑money laundering rules. It covers both new and existing customers. 

Users should check their email for step‑by‑step guides. The move follows registration with India’s Financial Intelligence Unit and the need to collect PAN details.

KYC Re‑Verification

Binance sent a note titled “Fellow Binancians.” It asked Indian users to redo their Know Your Customer checks. The firm stressed it only needs the details required by law. Both new and old customers must complete the process by following the email instructions.

The exchange assured users that their data would stay protected. It specifically requested PAN card information under Indian AML regulations. 

Binance noted that this rule applies to all local and global exchanges registered under India’s AML laws. The steps are clear and the process is free of hidden asks.

Also Read: Indian Organization Linked To Fake Hong Kong Chief Executive Account Suspected of Promoting Hong Kong Coin

Tax Deducted at Source Rule

Traders now face new tax measures alongside KYC checks. India’s Income Tax department is keeping a close eye on crypto trades. The government introduced a 1% Tax Deducted at Source on every crypto deal. It aims to bring more transparency to a fast‑growing market.

This TDS rule applies across all trading platforms, not just Binance. Some users say it adds cost and extra paperwork to their trades. The government insists it is vital for tracking income and curbing tax evasion. Traders must now factor this deduction into their plans.

Growing Cybersecurity Threats

A recent report warns that India’s crypto sector is under rising cyber attack risks. Experts from agencies like CSIRT‑Fin helped compile the study. They point out that hackers see digital tokens as a new frontier for crime. Without stronger defences, users and firms remain exposed.

The report highlights the need for better security tools and protocols. As digital assets grow in value, so does the incentive for theft and fraud. Regulators are pushing exchanges to adopt tougher safeguards. Users are also urged to stay vigilant with their own devices.

The push for re‑verification, tax checks, and better security shows how fast crypto rules are changing in India. Exchanges and traders must adapt to stay compliant and safe. Only then can the digital market grow healthily.

Other exchanges are already watching these moves. They may roll out similar KYC checks, tax deductions, and security upgrades soon. Traders should stay alert for fresh requirements across platforms to keep their accounts compliant and secure.

Also Read: Indian Town Adopts Avalanche Blockchain to Secure and Digitize 700,000 Land Records for Transparency

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