Binance, the world’s largest crypto exchange in terms of trading volume, is introducing a drastic change: From now on, all users must fully verify themselves in order to be able to use the platform.
“Better protection for users”
As Krypto-Exchance Binance has just announced, all customers now have to carry out a so-called KYC verification in order to be able to buy and trade cryptocurrencies on the exchange. KYC is an abbreviation for “Know Your Customer” and describes a legitimation check of new customers, which is prescribed in particular for credit institutions and insurance companies, in order to prevent money laundering.
The company about the announcement on Twitter:
“Binance is constantly reviewing its products and services to improve user protection, provide a secure crypto environment, and adapt to evolving global compliance standards. In an important step forward, we are updating our global KYC requirements for all users. “
Binance constantly reviews its products and services to enhance user protection, provide a safe crypto environment and to align with the evolving global compliance standards. As an important step forward, we’re updating our global KYC requirements for all users.
– Binance (@binance) August 20, 2021
ID and selfie are required
The following changes apply immediately: All new users must complete an “intermediate” verification in order to gain access to Binance products and services, including cryptocurrency deposits, trading and withdrawals. Existing users who have not yet carried out this verification can now only withdraw assets or leave positions. The full functionality should then be available again as soon as the KYC process has been carried out.
Up to now, the minimum requirement for verification was to enter your name and date of birth. An identification document including a selfie must now also be uploaded in order to be able to use Binance. The exchange adds:
“We are announcing these measures to increase Know Your Customer (KYC) and anti-money laundering efforts, which will further improve user protection and combat financial crime.”
We are announcing these measures to double down on efforts relating to Know Your Customer (KYC) and Anti-Money Laundering, which will further enhance user protection and combat financial crime.
For more information on KYC, please visit: https: //t.co/BQ8AftBmlI
– Binance (@binance) August 20, 2021
Regulation as a growth driver
With the move, Binance is possibly reacting to the regulatory pressure that the company has been exposed to for months. Several countries had previously warned that Binance would offer its services without a valid license. The Thai financial supervisory authority therefore even filed criminal charges against Binance. Regulators in the United States, Japan, the United Kingdom, Poland and the Cayman Islands have also raised concerns.
Binance CEO Changpeng “CZ” Zhao has been emphasizing for weeks: They want to do everything to meet the requirements and to become a regulated financial institution. This is now apparently being implemented in concrete terms. On Twitter, he comments on the process as follows:
“Actions speak louder than words.”
Mandatory KYC for ALL services @Binance.
Action speaks louder than words. https://t.co/EJupmQvStm
– CZ 🔶 Binance (@cz_binance) August 20, 2021
Opinions are divided on whether “more regulation” will have a positive or negative impact on the crypto industry. Many fear an attack on the crypto ethos: anonymity, independence, freedom. However, many industry experts also consider regulation to be a necessary prerequisite for sustainable growth in the industry, such as MicroStrategy CEO Michael Saylor. The founder of the hedge fund manager “Three Arrows Capital”, Su Zhu, sees something positive in Binance’s latest venture. He writes to his more than 235,000 followers:
“Binance kyc is bullish, it means that they are being viewed much more benevolently by regulators around the world.”
Binance kyc is bullish, means they will be looked upon much more favorably by regulators globally
know your bull
– Zhu Su (@zhusu) August 20, 2021
Last updated on August 20, 2021
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