The crypto exchange will limit services for existing users unless they adhere to the new KYC and AML requirements
Binance has been at the regulatory cross-hair of jurisdictions across the globe, amid claims of it operating unlicensed businesses. As remediation to the ongoing scrutiny, the crypto exchange has publicly announced new know your customer (KYC) requirements for all users on the platform.
“Effective immediately, all new users are required to complete Intermediate Verification to access Binance products and service offerings, including cryptocurrency deposits, trades and withdrawals,” the statement said.
Moreover, existing users that were previously allowed to trade cryptocurrency without verification will be allowed to only process “withdrawals, order cancellation, position close, and redemption.”
According to Binance, the change in policy for existing users will be rolled out in phases to ensure minimal disruptions in user experience. However, immediate KYC verification will allow the users to have complete access to Binance products and services. The company said:
“Binance strongly advises users to complete their Intermediate Verification promptly to avoid delays in the verification process and restrictions on their access.”
The crypto exchange claims to implement KYC and Anti-Money Laundering measures as a way to enhance investor protection against financial crimes.