Cryptocurrency exchange Binance has introduced mandatory know-your-customer (KYC) requirements for all users to access its products and services, including cryptocurrency deposits, trades, and withdrawals. This move came as a growing number of regulators worldwide issued warnings that Binance is operating illegally in their jurisdictions.
Binance’s New KYC Requirements
Binance announced “the global rollout of its Intermediate Verification requirement for all users” Friday. This mandatory KYC requirement came as more regulators worldwide warned that the global crypto exchange is operating illegally in their jurisdictions.
“Binance reviews its products and services on an ongoing basis to determine changes and improvements in light of evolving global compliance standards,” the exchange stated. “To enhance user protections and provide a safe crypto environment for everyone,”
Benefits of Binance
Binance is a leading cryptocurrency exchange, as its daily turnover exceeds the turnover of other similar platforms. It offers a wide range of currencies for transactions.
Users choose this platform for the following reasons:
- Binance was one of the first major exchanges where people could register on the platform using email and get instant access to a wide range of tokens.
- High speed of processing a large number of transactions.
- A global approach to their business and availability of the platform in multiple languages.
- Affordable fees.
This exchange is also used to help users maintain their privacy by allowing them not to complete verification. But now all clients have to provide proof of identity and pass this procedure.
Binance Essential Updates
Since now, all new users must complete KYC verification to access Binance products and service offerings, including cryptocurrency deposits, trades, and withdrawals.
Existing users who haven’t completed verification yet will have their account permissions temporarily changed to “Withdraw Only”, with services limited to withdrawal, order cancellation, position close, and redemption.
Earlier, only users transferring large sums had to verify their accounts.
This will be carried out in phases to minimize user-experience disruption. Once users pass verification, they will be able to resume full access to Binance services.
As the Binance team mentions, these updates are necessary for users’ safety. However, everyone has to provide documents and many private details for completing this procedure, which negatively affects users’ anonymity.