The Financial Intelligence Unit of India (FIU-IND) has reportedly instructed all crypto exchanges to confirm the know your buyer (KYC) information collected from customers primarily based in India, by the top of June. The KYC particulars which are older than 18 months will must be refreshed by all operational exchanges. Mudrex and Pi42 confirmed the event to Gadgets 360 on Friday. The intention of this step is to keep up correct particulars of crypto holders, whereas additionally figuring out the flouters of the nationwide crypto tax legal guidelines.
The FIU has noticed that many crypto customers in addition to exchanges are neglecting the one p.c TDS deduction regulation on crypto transactions, The Economic Times reported, citing nameless sources. The company now plans to tighten its oversight over crypto actions.
Bharat Web3 Association (BWA), which is an impartial crypto advisory physique primarily based in New Delhi, mentioned this directive underscores India’s push for regulatory accountability within the Virtual Digital Assets (VDA) area.
“The FIU-IND has directed all registered VDA exchanges to enhance KYC compliance by June 30, 2025, under the Prevention of Money Laundering Act (PMLA). This includes updating user data, re-verifying accounts older than 18 months,” the BWA posted on LinkedIn. “BWA supports this effort as a vital step toward fostering a transparent, secure, and regulation-aligned VDA ecosystem in India—one that builds long-term credibility.”
“All crypto exchanges operating in India are required to conduct periodic re-KYC and report TDS to the government.” Mudrex CEO Edul Patel told Gadgets 360. He also noted that crypto exchanges should take it upon themselves to ensure that their users are aware about tax obligations, helping them make informed decisions and stay on the right side of the law.
Earlier this week, Binance started informing its India users about the re-verification process through an email. The exchange has told its users to submit their PAN or (Permanent Account Number), which is a 10-digit identification number assigned to all taxpayers in India.
Sudhakar Lakshmanaraja, founder of Web3-focussed organisation, Digital South said that this step brings India in alignment with the global regulatory approach to crypto.
“Such proactive steps build greater confidence among stakeholders and reflect India’s intent to responsibly embrace the digital asset space,” Lakshmanaraja noted.
The government has yet to introduce comprehensive crypto legislation to govern the sector. Earlier in February this year, RBI Governor Sanjay Malhotra said that the government is working on its dialogue paper that will make clear India’s stance on the crypto {industry}.
