Binance Tightens Reporting Rules for P2P Crypto Transactions in India
Binance is a big crypto exchange. A crypto exchange is an app where people buy, sell, and send digital coins. Binance has just made its rules stricter for users in India.
The new rules ask people to share more personal details. You must share them every time you move crypto. A report by Inc42 says the changes started this week, around June 23, 2026.
The rules cover everyone in India who puts crypto in or takes crypto out of Binance.
These are called P2P rules. P2P means peer-to-peer (one person sending crypto straight to another person, not through a bank). Binance now wants extra proof of who you are for these transfers. Here is what changed, and why it matters for you.
What exactly did Binance change?
Indian users must now give KYC-like details for each transaction. KYC means “Know Your Customer” (the identity checks a bank or app runs before you can use it). The Inc42 report says the new rules apply when you deposit or withdraw crypto.
Both people in a transfer must share their details. That means the person sending and the person getting the crypto. This is true if the crypto stays inside Binance. It is also true if it moves to a wallet outside Binance.
| Detail required | Who must give it |
|---|---|
| Full name | Sender and receiver |
| Geographic region (country, town, or city) | Sender and receiver |
| PAN details | Sender and receiver |
PAN means Permanent Account Number (the 10-character tax ID the Indian government gives to taxpayers). When Binance asks for your PAN, it ties each crypto move to a real person who can be tracked.
Why is Binance doing this now?
Binance says the change matches global and Indian rules. The first rule is the FATF Travel Rule. FATF (the Financial Action Task Force) is a global group that sets rules to stop money laundering. Money laundering is when criminals hide where dirty money came from.
The Travel Rule says your identity info must “travel” with the transfer. It works just like a normal bank wire, where your details go along with the money.
The second rule is FEMA, the Foreign Exchange Management Act. This is India’s law that controls how money and foreign exchange move in and out of the country. By collecting names, regions, and PAN, Binance can keep records that match what the rule-makers want.
In its statement, Binance said the move is like banking. It said the Travel Rule works “similar to traditional banking wire transfers, where users provide similar identification information.” It also said the rule “ensures essential identification data securely accompanies transactions.”
The company said this helps with “transaction monitoring, risk assessment, and standard AML protocols.” AML means Anti-Money Laundering (checks that stop criminals from hiding dirty money).
How Binance got here in India
Binance has had a rough time in India. The report says it stopped its India work in late 2023. This happened after the finance ministry cracked down on it. Binance started up again in August 2024.
The comeback came after Binance signed up with the FIU. FIU stands for Financial Intelligence Unit (the Indian agency that tracks suspicious money flows). That sign-up, in August 2024, made Binance an officially recognised reporting entity in India. A reporting entity is a company that must tell the government about certain money moves.
| Event | When |
|---|---|
| Binance halted India operations | Late 2023 |
| Registered with FIU and restarted | August 2024 |
| New P2P reporting rules took effect | Around June 23, 2026 |
P2P crypto sits in a grey area
In India, P2P crypto transfers sit in a “grey area.” A grey area means there is no single clear law that fully covers them yet. This is one reason some other exchanges play it safe.
The report says CoinSwitch and CoinDCX do not offer P2P at all. Coinbase lets you swap crypto into rupees (INR) only. It does not let you send crypto to wallets outside the app.
Binance is different. It still offers P2P, but now adds tighter checks. This is a useful contrast for anyone tracking how Indian fintech firms handle new compliance demands. Fintech means companies that mix finance and technology. Compliance means following the rules set by the government.
Why it matters (especially for India and founders)
For everyday users, the message is simple. Crypto in India is starting to work more like a bank. You will need to share your real identity details. And your transfers can be traced. Quiet or anonymous P2P trading is getting harder.
For founders and fintech teams, this shows where the market is going. Following the rules is now a key part of the product, not an extra you add later. The same push to track and report money is shaping banks and fintechs too. You can see it in recent steps tied to RBI rules and GIFT City finance. Companies that build clean KYC and reporting early will face fewer nasty surprises when the rules get stricter.
FAQ
What new details does Binance now ask for in India?
For each transaction, both people must share three things: a full name, their geographic region (country, town, or city), and PAN details. This applies to transfers inside Binance and to wallets outside it.
When did the new rules start?
Inc42 says the changes started this week, around June 23, 2026. They cover all Indian users who deposit or withdraw crypto.
Why is Binance collecting this data?
Binance says it is following the FATF Travel Rule and India’s FEMA law. The goal is better tracking of transactions, better risk checks, and stronger anti-money-laundering controls.
Do other exchanges offer P2P in India?
Not really. CoinSwitch and CoinDCX avoid P2P. Coinbase only lets you swap crypto into rupees (INR), with no transfers to outside wallets.
The takeaway
The new Binance P2P crypto rules in India are one more step toward treating crypto like regular, regulated finance. That means more identity checks, more tracking, and fewer grey areas. For users, it means less privacy but clearer rules. For the industry, it shows that strong compliance is now the price of staying in the Indian market.
