The cryptographic landscape in India remains a gray area, with Asian superpower to establish a complete framework for cryptography regulations. However, recent developments indicate that India is moving towards a stricter supervision of the cryptocurrency industry.
The India Financial Intelligence Unit (FIU-Ind) ordered all the exchanges of cryptography operating in the country to update the details of your customer’s knowledge (KYC) by June 30, 2025. This decision is considered to be part of the broader efforts of India to strengthen cryptographic regulations and ensure tax compliance.
Why the FIU updates KYC rules
According to reports, an intelligence financial unit survey revealed that several users and exchanges did not respect the 1% TDS rules (tax deduced from the source) applicable to cryptographic transactions. To remedy this, the FIU-Ind has forced that all crypto exchanges must veneer and update user accounts to prevent violations of the money to money laundering.
Deadline of June 30: what crypto users and exchanges must do
Crypto exchanges must now ask users to veneer their KYC details, including the submission of essential information such as their permanent account number (PAN), before the deadline of June 30. Failure can cause regulatory action.
Reaction of the cryptography industry
The main world and local exchanges, including binance, have already started to inform users of the KYC re-revification process. The Local Blockchain Blockchain Blockchain Web3 Association Blockchain group welcomed the FIU-Indian Directive, declaring that it would improve transparency and security in the sector.
Edul Patel, CEO of Mudrex, stressed the importance of educating users on tax obligations alongside the compliance of KYC, highlighting an increasing accent on responsible use of cryptography.
India cryptography regulatory efforts
Despite the action of the CRF, the overall framework for India’s cryptography regulations is still being developed. The Reserve Bank of India could prepare a discussion document which will describe the government’s approach to regulation of the cryptography sector.
Industry leaders like Sudhakar Lakshmanaraja consider the recent FIU decision as a positive sign, suggesting that India is serious to create a clear and structured cryptographic regulatory environment.
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Faq
If you cannot update your KYC details by the deadline, your cryptographic account can be restricted, frozen or even suspended by exchange in accordance with FIU-Ind.
Most exchanges send direct e-mail notifications. Generally, you will need to connect to your account and submit updated documents such as your Pan card and proof of identity / address.
Exchanges that do not respect the FIU order can deal with a regulatory examination, fines or restrictions under the law on money money laundering (PMLA).
Yes, experts believe that the regulatory framework for Indian cryptography will soon include license requirements, operational audits and more strict financial reports.
