India Mandates Crypto Exchange KYC & PAN Update by June 30 Amid AML, Tax Compliance Drive

India is intensifying its cryptocurrency regulation by requiring all crypto exchanges in the country to update users’ Know Your Customer (KYC) details, including Permanent Account Number (PAN) verification, by June 30, 2025. This directive follows enforcement actions including a $2.25 million fine imposed on Binance for previous non-compliance with anti-money laundering (AML) rules. The Financial Intelligence Unit of India (FIU-IND) is driving the push, underlining the need to comply with the Prevention of Money Laundering Act (PMLA) and to address widespread failures to observe the mandatory 1% Tax Deducted at Source (TDS) on crypto transactions. Leading exchanges, including Binance, are now registering with the FIU-IND, and the industry broadly supports these measures as steps toward transparency, compliance, and investor trust. Users who don’t reverify their identity may see trading restrictions, while exchanges face the risk of regulatory penalties. The Reserve Bank of India is set to release a policy paper that may introduce licensing and stricter oversight for the sector. For crypto traders, this signals a major regulatory shift toward institutionalization and formal compliance—factors that often strengthen long-term market stability, though short-term volatility in exchange operations and user onboarding may occur during the adjustment period.