Binance Exchange, a leading player in the crypto market, is ramping up its regulatory compliance efforts in India. This move comes as a response to the increasing scrutiny faced by cryptocurrency exchanges in the country. While Binance has always been known for its robust compliance measures, some users are now finding the platform less favorable due to the additional verification requirements.
In recent months, Binance Exchange obtained FIU registration and pledged to uphold regulatory standards. However, some users have reported encountering obstacles when trying to deposit funds into their Binance accounts. For instance, one user shared that they were asked to provide detailed information about the source of their funds when attempting to deposit $1,000 worth of Tether stablecoin.
The exchange is now requesting users to specify whether the funds were received from a company or an individual, and provide comprehensive details about the entity, including their name, country of origin, address, PAN, or national ID number. These measures are aimed at ensuring compliance with India’s FEMA act and preventing money laundering.
While these steps are in line with regulatory requirements, many Binance customers have criticized the lack of an option for self-crypto wallets. This feature would allow users to link their non-custodial wallets to their Binance accounts, providing more control over their funds. Some users have pointed out that similar restrictions were implemented in South Korea two years ago, where users were required to verify the source of their fund deposits before transferring them to different types of wallets.
Overall, Binance Exchange’s heightened regulatory compliance efforts are a reflection of the evolving landscape of the cryptocurrency market. As regulations continue to tighten, exchanges like Binance are taking proactive steps to ensure transparency and security for their users. While these measures may present some challenges for traders, they ultimately contribute to a more secure and sustainable crypto trading environment.