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FIU-IND Orders Crypto Exchanges to Redo KYC by 30 June

25 April 20251 min read
BANKING & FINANCEFIU-IND OrdersCrypto Exchangesto Redo KYC by 30June25 April 2025safalsetu.com

Why in the news

FIU-IND ordered registered crypto exchanges to refresh user KYC by 30 June 2025, as required by the Prevention of Money Laundering Act.

Key facts

  • Stricter data collection for accounts judged “risky”.
  • Users must file tax returns to claim TDS exemption; skipping this is a PMLA lapse.
  • Penalties or operating limits may follow breaches; some no-TDS transactions are under tax investigation.

Exchanges

ExchangeStatus
BinanceFined ₹18 crore earlier; re-verifying KYC with PAN
BybitSettled ₹9.27 lakh fine; seeking fresh KYC
Coinbase GlobalNewly registered; planning retail launch

Background

Gains from Virtual Digital Assets (VDAs) are taxed at 30% under the 2022 Union Budget.

Test yourself

1. FIU-IND asked registered crypto exchanges to complete enhanced KYC by which date?

The deadline set was 30 June 2025.

2. What rate of TDS must crypto exchanges deduct on transactions exceeding ₹10,000, as per the FIU-IND directive?

Exchanges must deduct 1% TDS on transactions above ₹10,000.

3. Under which Act did FIU-IND direct crypto exchanges to enhance KYC processes?

The directive is in line with the PMLA.