The level of regulatory compliance of the Binance exchange has now reached new levels in India, where crypto traders are finding Binance less welcoming as a crypto trading platform.
Binance is the number one cryptocurrency exchange. The dominance of this exchange is very prominent in every cryptocurrency market, including the Indian cryptocurrency market. In the past few months, Binance exchange obtained the Financial Intelligence Unit (FIU) registration and assured that its services will be fully compliant with regulatory measures.
Today, some Binance users have noticed that they have encountered a small obstacle when trying to deposit funds into their Binance cryptocurrency accounts. In particular, one Binance user reported that he tried to deposit nearly $1,000 worth of Tether stablecoins, but Binance requested detailed information about the source of the funds so that the exchange can comply with regulatory requirements.
#Binance is asking customers for full details on crypto fund deposits from external crypto wallet sources pic.twitter.com/wO2CWwDq3A
— Bitcoinik (@Bitcoinikdotcom) October 6, 2024
Binance allows users to clarify whether they received funds from a company or an individual and further asks for all the details about the entity, including name, country of origin, PIN number, address, PAN or national ID number.
Binance asks for almost every detail of crypto senders, from name to address, including PAN pic.twitter.com/1j0bmvd0FM
— Bitcoinik (@Bitcoinikdotcom) October 6, 2024
All these new measures are intended to help Binance comply with India’s Federal Emergency Management Agency Act and assist in prohibiting money laundering. However, most Binance customers have criticized this option as there is no option for self-crypto wallets, where Binance users can add non-custodial wallets as personal wallets.
Some users pointed out that this is nothing new, as South Korea introduced similar restrictions two years ago. There, no one is allowed to blindly transfer cryptocurrency funds from centralized wallets to centralized or decentralized wallets. All users must first provide and verify the source of their fund deposits.
