According to a Binance announcement, all existing Binance users who have not completed their intermediate verification will have their account permission temporarily changed to “withdrawal only” until they do so.
Binance, the largest cryptocurrency by volume, has been facing regulatory backlash from various countries including the U.S, U.K, Italy, and Germany among others. As a remedy to the ongoing scrutiny, the cryptocurrency exchange has publicly announced new Know Your Customer (KYC) requirements for all users on the platform.
According to the statement, all new users “are required to complete Intermediate Verification to access Binance products and service offerings, including cryptocurrency deposits, trades and withdrawals.”
For existing users who have not completed their intermediate verification, the announcement stated, “Existing users who have not yet completed Intermediate Verification will have their account permissions temporarily changed to ‘Withdraw Only.’”
The announcement also stated that existing users who were previously allowed to trade cryptocurrency without verification will be allowed to only process “withdrawals, order cancellation, position close, and redemption.”
The announcement strongly advised its users to complete their intermediate verification stating that the change in policy will be rolled out in phases in order to minimize disruptions in user experience. However, it also assured that immediate KYC verifications will allow the users to have complete access to Binance products and services.
According to the closing statement in the announcement, “Binance is announcing these measures to help support its efforts in Know Your Customer (KYC) and Anti-Money Laundering (AML). This will further enhance user protection and combat financial crime.”
It is evident that Binance is making strong changes to its policies to enable it operate conveniently and have a better relationship with regulators in various countries. Before now, CEO Changpeng Zhao announced that the daily withdrawal limit for unverified Binance users dropped to 0.06 Bitcoin (BTC) from the previous limit of 2 BTC.
As previously reported by Nairametrics, Binance stated it had increased its compliance team by 500% since 2020 and it recently added a former US Treasury Criminal Investigator, Greg Monahan, to be the company’s Global Money Laundering Reporting Officer (GMLRO).
Binance native token BNB, is currently trading at $446, up approximately 6% for the day, as of the time of this writing.