Crypto KYC in India: Documents, Bank Checks and Transfer

Awaiting editorial review

This guide has not yet been signed off by our review desk. Check anything important against the official sources listed below.

01Why platforms ask

Crypto platforms serving India are reporting entities under the Prevention of Money-laundering Act (PMLA) and must register with FIU-IND. FIU-IND's guidelines require them to verify customers, monitor transactions and report suspicious activity.

KYC is a legal duty on the platform, not a sign it is safe. A registered platform can still be hacked, freeze withdrawals or fail.

02Documents and checks at sign-up

What is usually asked

PAN: Required. It links your trades and TDS to your tax record. The name must match your other documents.
Identity and address: Usually Aadhaar (often via DigiLocker or offline XML), passport, voter ID or driving licence. Some platforms ask for a second document.
Liveness check: A live selfie or short video, so a photo of someone else's ID cannot be used.
Location and device: Platforms may record your location, IP address and device at sign-up to check you are where you say you are.
Contact details: A mobile number and email in your control. Both are used for security codes.

Use your own documents only. Opening an account for someone else, or letting someone use yours, can make you liable for what passes through it.

03Your bank account must be your own

Rupee deposits and withdrawals normally go only to and from a bank account in your name.
Platforms often confirm this with a small test credit (a "penny drop") and compare the name the bank returns with your PAN.
A different spelling, a missing middle name or a joint account can cause a mismatch. Fix it before you deposit, not when you want to withdraw.
Payments from a family member's or friend's account are usually rejected or held, and may be returned only to the sender.

04Tax residence

Some platforms now ask which country you are tax resident in, and for a tax number if it is not India. This comes from new crypto-asset reporting rules that require platforms to collect and report this information. Answer accurately; a wrong answer can mean your account is restricted later.

NRIs and people who moved country during the year should expect extra questions, and some platforms do not accept non-residents at all.

05Source of funds and enhanced checks

If you deposit large amounts, trade in an unusual pattern, or move coins to or from certain wallets, the platform may ask where the money came from. Common requests:

salary slips, business accounts or recent bank statements
an income-tax return acknowledgement
proof of a sale, gift or inheritance that funded the deposit
an explanation of why coins came from a particular wallet or exchange

Your account may be partly or fully restricted until you answer. Keep the request and your reply in writing.

06Information sent with coin transfers

Under the international "travel rule", platforms exchange basic sender and recipient details when coins move between them. When you withdraw coins you may be asked:

whether the address belongs to you or to someone else
the name of the receiving exchange, or that it is your own wallet
the recipient's name, if it is not you

Deposits from another platform may be held until the sender's details arrive or you confirm them. Withdrawals to some wallets or services may be refused.

07Privacy: what to share and what never to share

Platforms must keep KYC records for years after you close your account. Read the privacy policy to see where data is stored and who it is shared with.
Upload documents only inside the official app or website. Never send them by WhatsApp, Telegram or email to someone claiming to be support.
Mask your Aadhaar number where the platform allows a masked copy.

No genuine platform or support agent will ask for your password, one-time code, seed phrase or remote access to your phone. Anyone who does is a scammer.

08Re-verification

KYC is not one-off. Expect to be asked again when:

your documents expire, or you change your name, address, phone or bank
the platform's periodic review comes round (more often for higher-risk accounts)
rules change and the platform needs information it did not collect before
you log in from a new device or country

Respond within the deadline the platform gives. Missing it can block deposits, trading or withdrawals until you complete it.

09KYC checklist

My PAN, ID and bank account all show the same name
I am uploading documents only in the official app or website
I answered tax-residence questions accurately
I keep payslips or bank statements handy in case I am asked about source of funds
I know a genuine platform never asks for my password, codes or seed phrase