This sounds pretty bad! This not only raises question on exchanges but also brings to light the weakness in security of banks and paytm. Like how is even so easy to hack them? Which also makes you wonder about the claims like - "crypto is linked with monetary crimes" Looks more like money is linked with monetary crime, irrespective of the form.
The next point of weakness lies in verification process of exchanges. They should ask for the person who claims to submitting the photo ID should take a picture/video while holding the photo ID. Say/write on piece of paper their name, ID number, exchange name and date in that video/picture. And instead of giving instant verification the exchange should take its time and verify authenticity of document further.
Posted using Partiko Android