Binance, the world’s top crypto exchange by trading volume has made KYC verification mandatory for all users. The latest announcement seems to be part of the company’s pledge to mend its relations with regulators around the globe.
Mandatory KYC for ALL services @Binance.
Action speaks louder than words. https://t.co/EJupmQvStm
— CZ 🔶 Binance (@cz_binance) August 20, 2021
The exchange said every new user on the platform would be required to complete KYC verification first and also urged existing users to complete their KYC at the earliest. For the existing users who have not yet completed their KYC, their account status would be changed to “Withdraw Only”, which would limit the account actions to withdrawal, order cancellation, position close, and redemption. KYC verification would be carried out in phases,
“This will be carried out in phases to minimize user-experience disruption, from now through 2021-10-19 00:00 AM (UTC). Existing users will be informed directly with more details. Once users complete the Intermediate Verification, they will be able to resume full access to Binance products and services.”
Binance constantly reviews its products and services to enhance user protection, provide a safe crypto environment and to align with the evolving global compliance standards. As an important step forward, we’re updating our global KYC requirements for all users.
— Binance (@binance) August 20, 2021
Changpeng Zhao (CZ), the CEO of Binance has made it clear that the company’s immediate focus would be to strengthen its regulatory position. He also said he is ready to step down for someone with significant experience on the regulatory side who can help the exchange move ahead of its current regulatory troubles.
Binance Trying to Catch up With Competition
The world’s top crypto exchange found itself in regulatory hot waters again in July, only this time around nearly a dozen countries sounded warning against the exchange for illegal operations. Since the regulatory awakening, Binance has taken a series of steps to ensure it complies with the local regulatory guidelines in the countries it is operating in. The crypto exchange also promised to build regional headquarters in every country it is operational in.
First, it discontinued its much-hyped stock tokens amid growing concerns of German regulators, it also brought down high leverage trading limit from over 100X to 20X and later discontinued its crypto derivative offerings across Europe and Hong Kong.