It is completely normal that things like this happen. The exchange must be protected from the laws on cryptocurrencies that are not 100% clear or that are not completely finished, otherwise they could have problems. I don't know how the legal situation is now (after reading so many contradictory articles) currently in India, but until the government 100% approves cryptocurrencies, it's better to close the doors to users from that country. And then, if possible, apply for the license to operate legally. This will make the requirements for KYC stricter and more personal data will be needed.