Binance announced today that users will need to perform intermediate verification in order to access all of the exchange’s services.
According to Binance’s announcement, people who want to open a new account in the future will have to go through a KYC process first. People who already have an account on the Exchange can still withdraw cryptocurrencies and close positions in the future. However, they will soon only be able to access all services again after the intermediate verification.
Binance and the authorities
For intermediate verification, customers must submit ID or passport and perform video verification. In the announcement, Binance stated that existing customers still have some time and will receive more information about this via email. After the time window, however, they can only close positions or withdraw crypto currencies.
Binance has been increasingly targeted by various national authorities since the introduction of the stock tokens. After BaFin became aware of the stock token offer and initiated an investigation, the exchange removed the stock tokens again. Since then, Binance has had problems with the authorities of many countries, such as Great Britain, Italy or Hong Kong, because the exchange allegedly did not comply with the regulations of the countries or does not have a license in these countries.
The exchange makes the KYC procedure mandatory in order to appease the authorities and to be able to comply with the legal regulations.
Binance CEO Changpeng Zhao commented on the update on Twitter:
In addition, Binance has already restricted the futures and derivatives offering in Germany, the Netherlands and Italy. New users can no longer access futures and derivative products. The future and margin accounts of existing customers will remain in place for the time being. However, in the next few weeks, at least private users should no longer be able to execute futures trades. This step also apparently happened because the stock exchange wanted to adapt to the laws and guidelines of the respective countries. Binance commented on the move with the words:
“We understand that many regulators at the local level have their own positions on crypto. And we welcome the opportunity to enter into a constructive dialogue about local requirements. “
Trading in crypto futures and derivative products is still possible in Germany on many other exchanges, such as Stormgain.
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