All Binance users must complete the KYC procedure
Binance will now require all of its users to complete the Know Your Customer (KYC) verification. This procedure allows the platform to verify the identity of investors. To complete the procedure, the user must provide a government issued identity document and a selfie.
“As of today, all new users are required to complete an intermediate verification to access Binance products and service offerings, including cryptocurrency deposits, transactions and withdrawals,” Binance announces in a press release published on August 20, 2021.
When opening a Binance account, users must complete the questionnaire to access the functionality of the exchange. Likewise, existing users will no longer be able to access all of the platform’s options until they have completed the intermediate verification level.
“Existing users who have not yet completed the interim check will have their account permissions temporarily changed to ‘Withdrawal only’, with services limited to withdrawal, cancel an order, close a position and the exchange ”, specifies the exchange.
Until now, it was enough to provide name, nationality, address and place of birth to access basic Binance functionality. However, the exchange already had restrictions on basic accounts. These accounts can only withdraw 0.06 BTC daily.
👉 Also read our guide to using the Binance exchange
Binance responds to pressure from regulators
Unsurprisingly, Binance says it is reacting to pressure from regulators. The platform explains in fact aligning itself with “the evolution of global compliance standards”.
“This will further enhance user protection and fight financial crime,” Binance argued in the statement.
In recent months, Binance has found itself in the crosshairs of regulators on several occasions. For example, the Netherlands recently accused the exchange of operating irregularly. Similar warnings have been issued by Malaysia, Singapore, the United Kingdom, Italy, the Cayman Islands and Japan.
Under pressure, Binance suspended its derivatives offering in Germany, Italy and the Netherlands. In order to appease regulators, CEO Changpeng Zhao pledged to comply with the authorities’ demands and make Binance a true “financial institution”.
👉 On the same theme – Binance and FTX lower their leverage for trading to x20
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About the author: Florian Bayard