invezz.com
Binance, the largest cryptocurrency exchange by trading volume, has updated its product and service policies to support mandatory Know-Your-Customer (KYC) verification. The exchange announced this news earlier today, noting that it made this amendment in response to changing global compliance standards. Additionally, Binance claims that these changes aim to improve user protections and create a safe crypto environment for its clients.
According to the announcement, the policy changes will require new users to complete Intermediate Verification to access Binance products and services. These include basic functionalities such as trading, depositing, and withdrawing crypto.
Are you looking for fast-news, hot-tips and market analysis? Sign-up for the Invezz newsletter, today.
Existing users that have not completed Intermediate Verification will have limited functionalities on their accounts. Per Binance, such users can only withdraw funds, cancel orders, close existing positions, and make redemptions. However, Binance intends to introduce these limitations in phases to lessen user interruption. Binance estimates that the entire process will run smoothly between now and September 19, 00:00 AM UTC.
Appealing to its customers to complete the required steps, Binance said,
Binance strongly advises users to complete their Intermediate Verification promptly to avoid delays in the verification process and restrictions on their access.
The exchange reiterated that these changes seek to support its KYC and Anti-Money-Laundering (AML) efforts to ensure user protection and fight financial crime.
Financial regulators gang up against Binance
Binance decided to make these changes in an attempt to save its skin from financial regulators that have been increasingly clamping down on its operations. For instance, the UK Financial Conduct Authority (FCA) said Binance is not licensed to operate in the country. As a result, the regulator banned Binance altogether.
In June, Japan’s Financial Services Agency (FSA) warned that Binance has been operating in the country without proper authorization. This became the second warning that the watchdog issued Binance, with the first one coming in May 2018.
Binance also decided to close shop in Canada in June after the Ontario Securities Commission (OSC) took action against three crypto exchanges for failing to adhere to securities laws. Under the imminent threat of regulatory sanctions, Binance voluntarily exited Canada, asking all Ontario-based users to close open positions by December 31, 2021.
While Binance stayed true to its course after these events, the last straw was an August 18 announcement by De Nederlandsche Bank (DNB), the Dutch central bank. According to the authority, Binance has been operating in the Netherlands without the required legal registration.