Cryptocurrency exchange Binance has officially announced that all users/traders are now required to complete its Know Your Customer (KYC) verification procedure in a bid to bolster efforts against money laundering.
This move comes after weeks of pressure from regulators from various functions across the globe.
Binance constantly reviews its products and services to enhance user protection, provide a safe crypto environment and to align with the evolving global compliance standards. As an important step forward, we’re updating our global KYC requirements for all users.
— Binance (@binance) August 20, 2021
Added to the above, the regulatory update also covers the existing traders’ net where users haven’t already completed their KYC verification. Until this verification is completed, Binance declares that such accounts will, by default, be set to “Withdraw Only”, meaning that users will only be able to withdraw cryptocurrencies and not trade them.
Here’s the regulatory update, as per the Binance circular:
Binance is making the following changes:
- Effective immediately, all new users are required to complete Intermediate Verification to access Binance products and service offerings, including cryptocurrency deposits, trades and withdrawals.
Existing users who have not yet completed Intermediate Verification will have their account permissions temporarily changed to “Withdraw Only”, with services limited to withdrawal, order cancellation, position close, and redemption. This will be carried out in phases to minimise user-experience disruption, from now through 2021-10-19 00:00 AM (UTC). Existing users will be informed directly with more details. Once users complete the Intermediate Verification, they will be able to resume full access to Binance products and services.
Furthermore, the exchange also states that these measures have been deployed in a bid to “improve relations with regulators” and to streamline the trading platform for all users across the globe.
Hailed as the world’s biggest exchange for cryptocurrencies, Binance has lately faced stark warnings from businesses and associated financial watchdogs who’re concerned over the use of cryptocurrencies in money laundering.
Binance continues to revamp its platform to the best of international requirements, and the update is one of many regulatory changes the exchange is making for assuring it lives up to such expectations.