I think Binance is applying such changes basing on the local regulatory landscape. It's very likely the Indian regulators asked Binance to add the changes so they can be able to easily monitor transactions of their citizens whenever they want.
What we know is each country will request for a different kind of thing, so I don't think all users around the world will received such notices/changes
I believe Binance has a separate site for the users from the US and every country will have a site localized according to their laws. At the end of the day, all governments want is to monitor every transaction made by their citizens and most countries are moving in that direction.
I posted something similar that will apply to all exchanges serving Australian users.
It looks like this procedure will become a global regulation and all centralized exchanges will inevitably lose a large number of users who don't want to deal with all this nonsense.
Thank you for sharing that, it is looking inevitable. In India, there is a flat 30% tax on all profits, alongside a mandatory 1% Tax Deducted at source. If you lose money on a cryptocurrency trade, you are legally forbidden from using that loss to lower your tax bill.
I believe these regulations are implemented to deter stock traders from venturing into the crypto market.
This appears to be a new strategy for collecting more data from platforms. Instead of relying on analytics firms, they are obtaining data directly from users. These restrictions may not be mandatory, but they will collect more data from users. Unfortunately, if implemented widely, this will significantly reduce user privacy.
It is really sad to see that the government is turning exchanges into a highly localized compliance tool to monitor a permissionless platform.
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You should always be careful about where and with whom you share your deposit address. For safety, avoid using your Binance account to accept deposits from random individuals, especially those using non-custodial wallets. It's better if the funds come from another exchange or a regulated platform.
I am actually curious to see whether they will actually hold on to our funds if the answer is not convincing to them.
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Based on tricks people use to bypass hidden AML checks on swap platforms, one of which involves parking funds from on-chain transactions in self-custody wallets for a period of time before forwarding them to the exchanger. I'm curious if this method can also be implemented under these new regulations, and what justifications would be acceptable for source of funds information without issue?
Probably those tricks might work here as well. Binance usually flags when huge amounts are credited from newly created wallets. If a fund originates from a wallet that we already use, I hope there won't be any further queries to prove the source.
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It is time for Indians to begin looking for alternative to binance before it is so late.
The alternatives that are available are not the best either. For exchanges based in India, you cannot even withdraw cryptocurrencies. You can deposit, trade and withdraw INR, but you cannot withdraw cryptocurrencies. These are the strange things we are facing.
Sounds very similar to how exchanges in my country enforce their KYC rules in the last few months or so. I can't remember the exact time where people started posting this request whenever they made withdrawal or deposit, but some of them decided to ignore it and the funds did arrive, albeit a little late. I'm sure they won't get away with it for too long though. Even I got notification asking for KYC updates for month even though I haven't changed or touched anything at all.
There is an exchange here named CoinDCX which asks to update KYC every two to three months. I have to spend half an hour for a video KYC verification every time. It was a major hassle and I stopped using them after they asked me to verify for the fourth time.
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Although all the new rules are certainly observed and others can adopt them if it suits them.
Yup, monitoring all user activity will be adopted by everyone, which is really disheartening.
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