Cryptocurrency exchange Binance has introduced new compliance rules requiring users in India to submit detailed sender and beneficiary information for all crypto deposits and withdrawals starting this week, according to inc42.com. The updated procedures align with the Financial Action Task Force (FATF) Travel Rule and India's Foreign Exchange Management Act (FEMA).
Under the new rules, Binance users must provide KYC-like details including full name, geographic location such as country, town or city, and PAN details when sending or receiving any amount of cryptocurrency. This applies to transactions both within and outside the exchange. Users will see pop-up prompts in the Binance interface to enter the required information for pending inbound and outbound crypto transactions, affecting all crypto deposits and withdrawals.
These changes come amid regulatory scrutiny of peer-to-peer (P2P) virtual digital asset transactions in India, which remain in a legal gray area. Binance’s move to tighten reporting requirements reflects efforts to comply with global anti-money laundering and counter-terrorist financing standards. Other major Indian exchanges like CoinSwitch and CoinDCX currently do not offer P2P transactions, highlighting Binance’s distinct approach to regulatory compliance in the market.
The new compliance procedures took effect this week, marking a significant shift in how Binance handles crypto transactions in India and underscoring the exchange’s commitment to adhering to FATF and FEMA guidelines.