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Major cryptocurrency exchange Binance announced that its customers must now complete KYC verification amid compliance pressures from regulators worldwide.
Mandatory KYC Verification for Binance Users
Binance users are now required to complete mandatory Know Your Customer (KYC) verification to access its wide array of services, including cryptocurrency deposits, trades, and withdrawals, the exchange announced Friday.
Existing users, who have met only the ‘basic’ tier of verification, must now complete the intermediate verification process which includes a government-issued ID along with facial verification.
Until the required verification is complete, only these accounts will be able to access the various services provided by the cryptocurrency exchange. While those accounts not completing the intermediate verification will be limited to ‘Withdrawal Only’ that would restrict only for order cancellation, position close, and redemption.
The intermediate verification process will be carried out in phases to minimize disruption in user experience. Following the verification, users will have complete access to all Binance products and services.
“This will be carried out in phases to minimize 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.”
Binance Under Regulatory Heat
Binance claims to implement KYC and AML measures as a way to enhance investor protection against financial crimes. Recently, the exchange also reduced the daily withdrawal limit for non-verified accounts from a maximum of 2 BTC to 0.06 BTC.
Binance has come under a series of regulatory scrutiny by global regulators in various countries including the U.S., the UK, Canada, Cayman Islands, Hong Kong, and several European Union countries. Most of the regulatory agencies have accused the crypto exchange of operating without any proper licenses. While major banks in the UK, Europe, and Asia have stopped offering services to the cryptocurrency exchange.
Binance’s latest move appears to be a direct response to the growing regulatory concerns and other bodies around the world.