By
Steve Muchoki
April 24th, 2024
Binance said that all existing and new users will have to go through its Identity Verification process after which they will be able to access Binance’s products and services.
In a new update released on Friday, August 20, crypto exchange Binance has introduced mandatory KYC for all users on its platform. This move comes amid a higher regulatory crackdown on the exchange over the last few months.
Binance said that it will continue to review its products and services on an ongoing basis. The exchange also mentioned that it will act in tune with evolving global standards. Binance calls this is a measure to enhance user protection and provide everyone with a safe crypto environment.
Thus, with immediate effect, all Binance users will need to complete “Immediate Verification”. Only upon verification, users will be able to access Binance products and services. This includes crypto “deposits, trades and withdrawals”. The official announcement reads:
“Existing users who have not yet completed Intermediate Verification will have their account permissions temporarily changed to “Withdraw Only”, with services limited to withdrawal, order cancellation, position close, and redemption”.
Binance noted that all of these actions will happen in specific phases without disrupting the user experience. Upon completion of Immediate Verification, the user will be able to resume full access to Binance’s products and services. In the concluding note, Binance wrote:
Binance is announcing these measures to help support its efforts in Know Your Customer (KYC) and Anti-Money Laundering (AML). This will further enhance user protection and combat financial crime.
Binance vs Regulators
Binance has maintained its dominance as one of the biggest crypto exchanges by trading volumes. The exchange has come under a series of regulatory scrutiny from global regulators. Binance has received regulatory notices from the UK, the US, Cayman Islands, Canada, Hong Kong, and several European countries.
Following this, Binance has shut down some of its major services. It recently shut down its derivatives trading services in Hong Kong and Europe.
It all started with the UK when the top financial regulator Financial Conduct Authority (FCA) issues major notices against Binance. Following that major banks like HSBC also started cutting payment channels for Binance.
The exchange’s US entity is also facing troubles. The previous chief of Binance US – Brian Brooks – recently quit following which it appointed Joshua Sroje as its interim CEO. Furthermore, BinanceUS has been looking to raise $100 million. However, investors remain wary amid all the regulatory crackdowns.