Binance Rolls Out Mandatory KYC Requirements Amid Regulatory Woes
Leading crypto exchange Binance has recently increased its customer verification requirements amid mounting pressure from global financial regulators.
All Binance Users Must Verify their Accounts
In an official announcement on Friday, Binance said that all new users must complete “Intermediate Verification” procedures to gain access to services such as cryptocurrency deposits, trades, and withdrawals, with immediate effect.
According to the exchange’s procedures, the Intermediate Verification involves users submitting their government-issued ID cards and passing facial verification.
Binance revealed that these changes are a result of ongoing reviews of its products and services to determine the necessary changes and improvements needed as the regulatory environment continues to evolve rapidly.
Existing Binance users were also not left out in the recent changes made. The exchange noted that all existing customers whose accounts are still at “Basic” verification will have their accounts limited to only withdrawal, order cancelation, position closing, and redemption.
“This will be carried out in phases to minimize user-experience disruption, from now through 2021-10-19 00:00 AM (UTC). Existing users can only resume full access to Binance products and services like deposits and trading after completing at least the Intermediate Verification,” the exchange added.
Binance also noted that this new mandatory verification is geared toward strengthening its know-your-customer (KYC) and anti-money laundering (AML) compliance to ensure the safety of its users’ assets and personal information.
Binance Under Heightened Regulatory Probe
The cryptocurrency industry has always been under intense scrutiny from financial regulators. But in recent months, the largest exchange, Binance, appears to be getting the brunt of the scrutiny.
Global regulators from multiple jurisdictions across the world, including Hong Kong, the U.S., Canada, the U.K., and several other countries, have accused the exchange of offering unlicensed services, among other accusations.
The ongoing crackdown on Binance has prompted the company to appoint several executives with strong regulatory backgrounds to help it navigate the strict legislative landscape. Just a few days ago, Binance hired a former U.S. Treasury criminal investigator to help it comply with global watchdogs.