For a long time, users at Binance were able to register with their email address and password. The pressure to regulate now means that from now on you have to verify yourself using the KYC process.
Binance, the world’s largest crypto exchange, is the focus of regulators around the globe, including the UK, Japan, Canada, Poland, the Cayman Islands, Thailand, the US and Germany. The Netherlands even revoked the platform’s license this week. Binance had recently praised improvement and announced a series of measures. After the maximum leverage was reduced, share tokens were canceled, a tax API was introduced and the payouts for unverified accounts were limited, a further tightening is pending.
Binance: Registration only with ID and photo
From now on, users should go through a complete KYC (Know Your Customer) process when registering on Binance. After a long time an email address and a password were enough to start trading in cryptocurrencies, documents such as an ID, driver’s license or passport now have to be presented. Users must also take and upload a photo of themselves.
Existing basic users are also asked to carry out a verification in order to be upgraded to the so-called intermediate level. A transition period should apply until October 19, 2021. Until then, the accounts will be set to the status “Only payout possible”, as Binance announced. Active trading is then no longer possible, but only a payout of the amounts held, a dissolution or closing of positions and a sale. After verification, access to all Binance services should then be granted again.
Binance CEO: “Actions speak louder than words”
Binance CEO Changpeng “CZ” Zhao commented on the announcement of the KYC obligation on Twitter with the sentence: “Actions speak louder than words”. Binance let it be known that they are constantly reviewing their products and services in order to better protect their users inside and to create a secure crypto environment. They also want to comply with global compliance standards. The KYC regulations are an important step forward. In the fight against money laundering activities, Binance is also said to support a former US tax investigator.
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