Binance has announced that all existing users who have not completed intermediate verification will have their accounts’ permission temporarily changed to ‘withdrawal only’ until they do so.
The altcoin has been facing criticism and backlash from various countries. Some of which are the U.S, U.K, Germany, and Italy among others. In an attempt to remedy some of the ongoing scrutiny, Binance has publicly announced KYC requirements for all users on its platform.
The statement asserts that all new users are required to complete intermediate verification to access Binance products and service offerings. That includes cryptocurrency deposits, trades and withdrawals.
For old users who have not completed their intermediate verification, the announcement stated that they will have their account permissions temporarily changed to ‘withdraw only.’
The announcement also stated that old users who were previously allowed to trade without intermediate verification will only be allowed to process withdrawals, order cancellation, position close, and redemption.
Binance strongly advise its users to complete their intermediate verification as the change in policy will be rolled out in phases in order to minimize disruptions in user experience. However, it also assured that immediate KYC verifications will allow the users to have complete access to their products and services.
The closing statement in the announcement said that Binance is announcing these measures to help support its efforts in KYC (Know Your Customer) and AML (Anti-Money Laundering). This will further enhance user protection and combat financial crime.
It is clear that Binance is making strong changes to its policies to enable it operate smoothly and have a better relationship with regulators in numerous countries. Binance has amped up efforts to counter the criticism its business operations currently face, mainly from regulators around the world.
Earlier, CEO Changpeng Zhao even announced that the daily withdrawal limit for unverified Binance users dropped to 0.06 Bitcoin from the previous limit of 2 Bitcoin. Binance stated it had increased its compliance team by 500% since 2020. It has also recently added a former US Treasury Criminal Investigator, Greg Monahan, to be the company’s GMLRO (Global Money Laundering Reporting Officer).
Binance’s native token, BNB, is currently at $446, up approximately 6% for the day, at the time this article was written.
A Little About Binance
Binance is the world’s leading blockchain and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by volume. It’s trusted by millions worldwide. The Binance platform is dedicated to increasing the freedom of money for users, and features an unmatched portfolio of crypto products and offerings. It includes trading and finance, education, data and research, social good, investment and incubation, decentralization and infrastructure solutions, and more. For more information about Binance, visit https://www.binance.com.
KYC is an acronym for ‘Know Your Customer’. It refers to a mandatory verification of a customer’s identity, typically by a financial institution. It includes information that can be used to verify your identity, like a valid identification card, utility bills with your house address, social security number, etc.
Customers are typically required to submit KYC details during financial account opening and at times, when there has been a change in the information. For example, if you change your name officially a few months after creating your account, you are going to be required to update your KYC information.
Why KYC Is Important in Crypto
If you do not complete the KYC process, you will not be able to access all the features on a cryptocurrency exchange and many finance platforms. For example, Binance allows customers to create accounts, use basic functions and perform limited transactions without submitting KYC information. In order to gain full access and increase higher deposits and withdrawal limits, customers will need to complete the KYC verification process.