Binance Mandates Indian Users Re-Verify Identities for AML Compliance

Binance, the global cryptocurrency exchange, has mandated that all its Indian users re-verify their identities through the Know Your Customer (KYC) process to comply with India's anti-money laundering (AML) regulations. This move is part of Binance's ongoing efforts to align with the stringent financial regulations set by the Indian authorities.

Under the Prevention of Money Laundering Act (PMLA), 2002, Binance is required to collect Permanent Account Number (PAN) data from all users. This requirement applies to both new and existing users, ensuring that the exchange adheres to the legal standards set by the Indian government. The re-verification process is aimed at enhancing account security and preventing any potential misuse of the platform.

Binance's decision to re-verify KYC comes after facing regulatory challenges in India. In June 2025, the Indian Financial Intelligence Unit (FIU) imposed a fine of $2.25 million (INR 188.2 million) on Binance for not complying with AML procedures. The FIU found that Binance lacked proper protocols for anti-money laundering, which led to the imposition of the penalty. This incident highlighted the need for stricter compliance measures to operate legally within the Indian market.

In response to these challenges, Binance has taken proactive steps to address regulatory concerns. The exchange officially registered with the FIU-IND in August 2025, allowing it to operate without interruptions in India. This registration enabled Indian users to regain access to the Binance website and mobile application, ensuring a seamless trading experience.

Binance has emphasized that the data collected through the KYC process is secure and used solely for legal compliance. The exchange aims to create a safe digital asset ecosystem, ensuring that the re-verification process does not inconvenience users while maintaining the highest standards of security. This initiative is part of a broader industry trend towards regulatory compliance in the cryptocurrency market, promoting a legally reliable environment for digital asset trading.

As India continues to develop its digital finance regulations, Binance's efforts to comply with AML standards reflect its commitment to maintaining transparency and security. The exchange works closely with the Indian government to build trust and foster a secure environment for cryptocurrency trading, ensuring that users can engage in digital asset transactions with confidence.