In recent news from New Delhi, India, there has been a significant shift in the behavior of Indian cryptocurrency investors towards the popular exchange Binance. Following the mandatory rule of PAN card verification for all users, a growing number of investors are choosing to withdraw their funds from the platform. This move is in compliance with India’s financial regulations, but it has sparked concerns among many users.
The primary reason behind this exodus of investors is the recent announcement by Binance regarding the mandatory completion of identity verification by linking users’ Permanent Account Number (PAN) cards. Failure to comply with this requirement may lead to temporary restrictions on trading and withdrawals for users. This has raised fears among investors that tax officials may scrutinize their accounts more closely, potentially impacting their crypto investments and holdings in the market.
Binance has set a deadline of 20th April 2025 for Indian users to complete their PAN card verification process. After this date, users who have not verified their accounts will not be able to trade or withdraw funds from their accounts. In response to this deadline, many Indian crypto traders are moving their funds to other exchanges that do not require PAN card verification, or are investing in decentralized wallets to avoid such identity checks.
The decision to enforce PAN card verification stems from Binance’s agreement with India’s Financial Intelligence Unit (FIU-IND) in 2024, under pressure from the government. This move was aimed at ensuring compliance with anti-money laundering laws and implementing new KYC policies. The PAN card verification requirement is a part of this regulatory procedure.
For Indian investors on Binance, the approaching deadline has left them with a dilemma. They must choose whether to complete their identity verification under the new rules or withdraw their funds before facing restrictions. Experts advise investors to stay informed about the changes and consider alternative exchanges if necessary.
As India tightens its grip on cryptocurrency regulations, Binance’s adherence to strict compliance rules may have repercussions on the crypto trading market in the coming months. Investors are urged to stay vigilant and adapt to the evolving regulatory landscape to protect their investments.