Exchange of cryptocurrencies Binance has made know-your-customer (KYC) procedures essential for all users in order for them to access its products and services, including cryptocurrency deposits, trades, and withdrawals. This move came as an increasing number of regulators throughout the world issued warnings that Binance was operating unlawfully in their areas.
According to the exchange, “Binance reviews its products and services on an ongoing basis to assess modifications and improvements in light of increasing worldwide compliance standards.” Binance wrote: “To improve user protections and provide a safe crypto ecosystem for everyone.”
All new users must complete Intermediate Verification immediately in order to access Binance products and services, including cryptocurrency deposits, trades, and withdrawals.
Binance stated that the additional KYC methods are intended to “assist its efforts in knowing your customer (KYC) and anti-money laundering (AML),” adding that “this will further strengthen user protection and combat financial crime.”
Existing Binance users are also affected by the new measures. The conversation clarified:
Existing users who have not yet completed Intermediate Verification will have their account permissions temporarily altered to ‘Withdraw Only,’ with withdrawal, order cancellation, position closing, and redemption services limited..
This will be done in stages from now until October 19, according to Binance.
Users must upload a selfie as well as an image of their ID documents, such as passports, ID cards, and driver’s licences, in order to use Intermediate Verification. Users will also be required to perform “facial verification.”
Binance CEO Changpeng Zhao (CZ) tweeted Friday:
He stated earlier this week that regulatory compliance is Binance’s top priority, and that he devotes nearly all of his time to it. Furthermore, the CEO stated that Binance intends to “significantly” expand its legal and compliance teams as the firm transitions from a technology developer to a financial services company.