Binance makes the verification of new users mandatory – and existing accounts will have to face restrictions sooner or later if the verification is not made.
Binance: KYC should be strengthened
The world’s largest crypto trading platform has been in the crosshairs of regulators around the world for some time as it allegedly operates unlicensed businesses. For this reason, the EU Commission wants to illegalize anonymous crypto wallets (Trending Topics reported). The commission demands that in the future, if possible, all transactions of crypto assets can be traced and assigned to persons. Binance is now responding to the demands – and more likely to the ongoing reviews by the regulatory authorities: There should be new KYC rules – which means the company will be stricter when collecting user data (KYC).
EU Commission wants to illegalize anonymous crypto wallets
Binance: verification required
“As of now, all new users must perform instant verification in order to gain access to Binance products and services, including cryptocurrency deposits, trades and withdrawals,” it said in a statement. Existing users who were previously allowed to trade in cryptocurrencies without verification are now only allowed to carry out “withdrawals, cancellations, closings and refunds”. However, these restrictions are to be implemented gradually for existing accounts. If you want to be on the safe side and continue trading in full, you have to complete the verification process, explains the crypto trader further: “Binance urgently advises users to complete their intermediate verification immediately in order to avoid delays in the verification process and access restrictions.”
Effects on new customers
As early as July, the crypto exchange limited the withdrawal amounts for users who have not carried out a full KYC verification (Trending Topics reported). The withdrawal limit of 2 BTC was drastically reduced back then – to just 0.06 BTC. For new customers, this further step could definitely have an impact: The previous registration took about a day on average, according to Cointelegraph – the checking of all documents, including the identity card, the face check and proof of the home address, could take up to 20 days in total take advantage of.
Binance restricts anonymous trading in Bitcoin