According to The Economic Times, Binance, the world's largest cryptocurrency exchange by trading volume, has implemented stricter rules for Indian users effective June 22, 2026. The new procedures require users to disclose additional information for every crypto withdrawal and deposit, including details about both originators and beneficiaries. This move aims to enhance transaction traceability and address concerns from regulators about potential misuse of virtual digital assets for circumventing foreign exchange rules.
As reported by The Economic Times, users must now provide comprehensive information when receiving crypto assets from other exchanges or self-hosted wallets. This includes the originator's name, permanent account number or national ID number, country of residence, complete address with pin code, and the type of wallet being used. Similarly, when withdrawing cryptocurrency to self-hosted or private wallets, users must specify the destination wallet type and provide beneficiary details such as name, country of residence, and the crypto exchange where the beneficiary holds an account. The requirements apply regardless of transaction size and only affect external wallet transfers or other platform interactions.
The new procedures align with India's implementation of the FATF Travel Rule, which requires Virtual Asset Service Providers to collect and share originator and beneficiary information for crypto transactions. India has enforced a stricter version of this rule compared to most global jurisdictions, applying it to transfers of all sizes rather than only those above the FATF-recommended threshold of $1,000. Binance, which is registered with the Financial Intelligence Unit of India (FIU-IND) as a reporting entity under the Prevention of Money Laundering Act (PMLA), is obligated to comply with these anti-money laundering requirements. The exchange was previously fined ₹18.82 crore by Indian authorities for compliance violations before securing its registration in August 2024.
According to The Economic Times, the process is straightforward with users seeing a pop-up window during the withdrawal or deposit flow, where they simply need to fill in the required fields before the transaction can proceed. No action is needed from users who do not engage in crypto transfers on the platform. Binance noted in its announcement that the changes are subject to amendment at any time and advised users to refer to the original English version of the notice for the most accurate details. The changes only apply to crypto transfers, with users who are not performing deposits or withdrawals remaining unaffected.
As reported by The Economic Times, Indian crypto exchanges such as WazirX and CoinDCX had already started collecting similar originator and beneficiary details from their users in earlier phases of Travel Rule enforcement. With the Indian government continuing to tighten crypto compliance, including the flat 30% tax on Virtual Digital Asset gains and 1% TDS on transfers, users operating on any exchange in India should expect more such procedural updates in the months ahead. The changes bring Binance in line with the same standards as other Indian exchanges while addressing regulatory concerns about money trails and potential circumvention of foreign exchange controls.
