FIU compliant exchanges will ask for proof of funds

pakhitheboss

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Quote from: avikz on October 30, 2024, 12:37:21 PM

Zebpay owner is wise and that's why he moved his company to Singapore.

He moved his company back in 2018 when a blanket ban was in place due to RBI. Furthermore if the exchange needs to operate in India then they have to become FIU compliant. Which I am certain that they have become otherwise they would have gone through the same blanket ban that the government of India had done for international exchanges like Binance and Kucoin. Since, they were not blacklisted I am certain that they are FIU compliant.

avikz

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Quote from: Bitcoin Smith on October 20, 2024, 11:59:28 AM

I saw the post other day which is posted by a Binance user from India who is asked to submit to provide the proof of funds for his crypto deposits so I just want our community to know that if anyone still using centralized exchanges.

I can't find that picture, but Ill add later if I find.

So proof of funds means you can't sell the cryptos that you didn't have valid evidence to show that is yours and the sad part is they can hold the funds for the only reason until we provide all the necessary documents they need and also you can't sell someone's cryptos in your account because that can become an issue if they raise proof of funds for those deposits.

Yes I believe Majority of the Indian crypto users are aware of it. Unless you are able to provide the proof on how you have obtained those cryptocurrencies, they will not process your transaction and they will also not refund that money to you. That's precisely what FIU compliance does.

That's why please avoid using any Indian cryptocurrency exchanges. They are bound to report every single transactions to FIU and Income tax department. It's a suicide if you use Indian crypto exchanges.

Zebpay owner is wise and that's why he moved his company to Singapore.

pawanjain

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Quote from: Bitcoin Smith on October 26, 2024, 09:00:36 AM

Quote from: pawanjain on October 23, 2024, 11:28:30 AM

Quote from: Bitcoin Smith on October 22, 2024, 07:03:34 AM

Binance, KuCoin Request Source of Funds from Indian Users After FIU Registration

This link is redirecting me to a 500 error page. May be binance has removed the article from their site.
May be what you said is true but that isn't happening to all of us. May be it's only for certain people whose transactions are flagged.
Binance is not asking every Indian individual to submit the source of funds, at least not yet.
May be if the FIU regulations become stringent then they might start asking every one else to submit the proofs too.

It's working fine for me, please check again and see if it's working or not.

I haven't used any exchanges for a while so I can't able to authenticate the credibility but it's more likely they will start scrutinizing the users like high profile traders and ask them for the proof of funds for the initial procedure then they might come at the average users but one who uses less will not likely to have any problem in my opinion.

Yes, the link is working fine and I can read the article now. Not sure why it wasn't working earlier.
Even I am not using the exchange much but I do few hundred dollars lying around in it.
Binance asking for source of funds does seem like a genuine issue but on the other hand, those who have genuine source of funds need not worry at all right.
This looks like a trouble more towards those people whose source of funds is illicit.
But yeah, I do get that our privacy will be at risk if we declare our funds to them.

Bitcoin Smith

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Quote from: pawanjain on October 23, 2024, 11:28:30 AM

Quote from: Bitcoin Smith on October 22, 2024, 07:03:34 AM

Binance, KuCoin Request Source of Funds from Indian Users After FIU Registration

This link is redirecting me to a 500 error page. May be binance has removed the article from their site.
May be what you said is true but that isn't happening to all of us. May be it's only for certain people whose transactions are flagged.
Binance is not asking every Indian individual to submit the source of funds, at least not yet.
May be if the FIU regulations become stringent then they might start asking every one else to submit the proofs too.

It's working fine for me, please check again and see if it's working or not.

I haven't used any exchanges for a while so I can't able to authenticate the credibility but it's more likely they will start scrutinizing the users like high profile traders and ask them for the proof of funds for the initial procedure then they might come at the average users but one who uses less will not likely to have any problem in my opinion.

pakhitheboss

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Quote from: pawanjain on October 23, 2024, 11:28:30 AM

Binance is not asking every Indian individual to submit the source of funds, at least not yet.
May be if the FIU regulations become stringent then they might start asking every one else to submit the proofs too.

That is what I had replied earlier on this thread that Binance is not asking every Indian users to submit a proof of funds. If they are doing it then it will be due to some reason or the government has asked them to question a particular user.

They are aware of the source if the funds come from another CEX or a DEX. But if it comes from a personal wallet then they might ask for proof if FIU regulations become stringent.

pawanjain

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Quote from: Bitcoin Smith on October 22, 2024, 07:03:34 AM

Binance, KuCoin Request Source of Funds from Indian Users After FIU Registration

This link is redirecting me to a 500 error page. May be binance has removed the article from their site.
May be what you said is true but that isn't happening to all of us. May be it's only for certain people whose transactions are flagged.
Binance is not asking every Indian individual to submit the source of funds, at least not yet.
May be if the FIU regulations become stringent then they might start asking every one else to submit the proofs too.

JSRAW

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Nowadays, I am using Binance for Staking only and occasional withdrawals to an Indian account so can't comment if it's genuine or not.

But I won't be surprised if it's true because Gov was pushing for it and I assume, now it's the same process as Indian exchanges. Indian exchanges like COINDCX also start asking for proof on deposits and it's with every transaction, doesn't matter if it's big or small.

Bitcoin Smith

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Quote from: TheUltraElite on October 21, 2024, 12:47:07 AM

There might be more to this than we can actually uncover. The person in question might not be revealing the complete story.

Can you share the images here if you got them or link us to the post you have seen?

Quote from: pakhitheboss on October 21, 2024, 07:25:10 PM

That is correct the person who has posted the letter might not be sharing the reason why he received it.

I can't be able to find that picture which I saw on Reddit but Binance wrote an article about this.

Crypto exchanges Binance and KuCoin allegedly demand users’ personal information to facilitate transactions.

The observations were made by users of the platforms not long after both exchanges completed registration with India’s FIU.

Simple transaction errors made by users might also be flagged going forward.

Following Binance’s registration with India’s Financial Intelligence Unit (FIU), Indian-based cryptocurrency users have made claims that Binance now demands more information for users to carry out deposits and withdrawals on its platform. Market players have also highlighted the potential impact of the exchange’s most recent regulatory move.

As observed by Pushpendra Singh, a popular Indian crypto tech personality, cryptocurrency exchanges Binance and KuCoin have begun requesting sources of funds from their respective users. A screenshot Singh shared on X shows that users of both exchanges must now justify the source of their payments after each deposit. This includes providing the depositor’s PAN card, as required by the FIU. For larger crypto deposits, users must also provide their name, company, and Aadhaar number.

Binance, KuCoin Request Source of Funds from Indian Users After FIU Registration

pakhitheboss

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Quote from: TheUltraElite on October 21, 2024, 12:47:07 AM

There might be more to this than we can actually uncover. The person in question might not be revealing the complete story.

Can you share the images here if you got them or link us to the post you have seen?

I am sure there is more than what meets the eye. Unless something fishy was going on proof of funds would not be asked for. Still it is better to stay away from centralized exchanges.

That is correct the person who has posted the letter might not be sharing the reason why he received it. Why would Binance only pin point an individual and ask him for the source of funds? Unless the government has approached Binance to question the user in thier behalf.

vino.gcs

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Quote from: Bitcoin Smith on October 20, 2024, 11:59:28 AM

I saw the post other day which is posted by a Binance user from India who is asked to submit to provide the proof of funds for his crypto deposits so I just want our community to know that if anyone still using centralized exchanges.

I can't find that picture, but Ill add later if I find.

So proof of funds means you can't sell the cryptos that you didn't have valid evidence to show that is yours and the sad part is they can hold the funds for the only reason until we provide all the necessary documents they need and also you can't sell someone's cryptos in your account because that can become an issue if they raise proof of funds for those deposits.

It works like this in all countries, there is no way anyone can do as they want and not declare anything, let's say that the most important thing is to warn those who use these exchanges to understand that there are rules to follow and not make mistakes or continue to make mistakes.

TheUltraElite

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So anyway, I applied as a merit source :)

There might be more to this than we can actually uncover. The person in question might not be revealing the complete story.

Can you share the images here if you got them or link us to the post you have seen?

I am sure there is more than what meets the eye. Unless something fishy was going on proof of funds would not be asked for. Still it is better to stay away from centralized exchanges.

pakhitheboss

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Are you sure that Binance has been asking users to provide a source of funds? I have been using Binance for trading and have been transferring funds from either my wallet or another centralized exchange, I have not received any email from them. I assume it depends on the amount in USD that can trigger this email as I have made a maximum transfer of <$1000. I feel anyone beyond that amount might or will get a letter from Binance questioning the user for the source of funds. I was wondering whether the user in question by Binance can transfer the funds from Binance or not.

Bitcoin Smith

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I saw the post other day which is posted by a Binance user from India who is asked to submit to provide the proof of funds for his crypto deposits so I just want our community to know that if anyone still using centralized exchanges.

I can't find that picture, but Ill add later if I find.

So proof of funds means you can't sell the cryptos that you didn't have valid evidence to show that is yours and the sad part is they can hold the funds for the only reason until we provide all the necessary documents they need and also you can't sell someone's cryptos in your account because that can become an issue if they raise proof of funds for those deposits.

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