The world’s top-selling crypto exchange, Binance, puts an end to anonymous use. An identity check (KYC) is becoming a must for new and existing customers at Binance.
In the crypto scene it is no secret that quite a few investors prefer to remain anonymous. Serious platforms that made this possible have become increasingly rare in recent years. In response to pressure from regulatory and tax authorities, it has become standard for crypto exchanges to require customers to verify their identity, in which official documents are used to clearly record their name and place of residence. So far, the industry leader Binance still offered a loophole: Those who waived the use of bank transfers and FIAT could register anonymously and still make transactions as well as deposits and withdrawals in Bitcoin and Co. At the end of July, Binance already lowered the limit for such unspecified customer accounts to 0.06 Bitcoin (BTC) from 2 BTC previously. But now this option is also being abolished.
Binance uses customer information to inform them that, from now on, new customers will only be activated for trading once an identity check has been carried out. For existing customers at Binance, the obligation to verify identity is to be implemented by October 19. With immediate effect, however, trading in crypto currencies is prohibited for anonymous customer accounts and, according to Binance, only withdrawals and the dissolution of positions are possible.
Regulatory pressure changes Binance
Binance CEO Changpeng Zhao (“CZ”) commented on the new obligation to verify identity via Twitter with the saying: “Actions speak louder than words”. In the last few weeks he had already admitted in various interviews and requests to speak that Binance had to become more proactive in complying with legal framework conditions. Meanwhile, crypto expert Larry Cermak orders Binance’s move Twitter one with “the pressure must have gone crazy”. Cermak also shows that, according to Binance, 80 percent of customers already choose an identity check when they open customer accounts.
Against this background, a look at the price curve of Binance Coin (BNB) is also illuminating. Because BNB – in line with the overall market – has posted a significant plus for customers since the announcement of the changed conditions. Investors seem to welcome the fact that Binance is swiveling on a peace course with the authorities, even if this may result in the loss of some customers.
Conclusion: If in doubt, catch up on KYC at Binance now
You will hardly want to risk losing your access to the Binance customer account. If you have skipped the identity check up until now, now is the time to take action. As far as we know, you can anonymously withdraw crypto credit from Binance until October 19, if necessary in tranches, in order to take into account the daily limit of 0.06 BTC. But it probably makes more sense for you, too, to initiate Know Your Customer (KYC) online at Binance in order to continue to use the wide range of offers. Binance informs that confirmation from KYC can currently take up to ten days, presumably in anticipation of a large number of cases to be processed.
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