Binance has been in the crosshairs of jurisdictions around the world due to allegations that it operates without a license. To remedy ongoing scrutiny, the crypto exchange has publicly announced new Know Your Customer requirements. (KYC) for all platform users.
“Effective immediately, all new users must complete Interim Verification to access Binance products and service offerings, including cryptocurrency deposits, operations, and withdrawals.”says a statement.
On the other hand, existing users who could previously trade cryptocurrencies without verification will only be able to process “withdrawals, order cancellation, position closure and redemption”.
According to Binance, the policy change for existing users will be rolled out in phases to ensure minimal interruptions to the user experience. Nevertheless, KYC’s immediate verifications will allow users full access to Binance products and services. The company said:
“Binance strongly advises users to complete their Interim Verification promptly to avoid delays in the verification process and restrictions on their access.”
The crypto exchange claims that it implements KYC and Anti Money Laundering measures as a way to improve investor protection against financial crimes.
Currently, it is estimated that the basic verification on the Binance portal is processed in one day. Nevertheless, Verification of all documents including government ID, face verification and proof of residential address will require a total of 20 days for review.
Binance has redoubled its efforts to counter the criticism its trading operations are currently facing, primarily from regulators around the world.. On July 28, the cryptocurrency exchange limited withdrawal amounts for users who did not complete KYC verification.
As a result of this announcement made by CEO Changpeng Zhao, daily withdrawal limit for unverified Binance users dropped to 0.06 Bitcoin (BTC) from the previous limit of 2 BTC.
Zhao has also shared his intentions to work with regulators, as The exchange has been warned for operating without a license in several countries.