Cryptocurrency exchange Binance has introduced mandatory know-your-customer (KYC) requirements for all users to access its products and services, including cryptocurrency deposits, trades, and withdrawals. This move came as a growing number of regulators worldwide issued warnings that Binance is operating illegally in their jurisdictions.
Binance’s New KYC Requirements
Binance announced “the global rollout of its Intermediate Verification requirement for all users” Friday. This mandatory KYC requirement came as more regulators worldwide warned that the global crypto exchange is operating illegally in their jurisdictions.
“Binance reviews its products and services on an ongoing basis to determine changes and improvements in light of evolving global compliance standards,” the exchange stated. “To enhance user protections and provide a safe crypto environment for everyone,” Binance wrote:
Effective immediately, all new users are required to complete Intermediate Verification to access Binance products and service offerings, including cryptocurrency deposits, trades and withdrawals.
Binance explained that these new KYC measures aim “to help support its efforts in know your customer (KYC) and anti-money laundering (AML),” adding that “This will further enhance user protection and combat financial crime.”
The new measures also affect existing Binance users. The exchange clarified:
Existing users who have not yet completed Intermediate Verification will have their account permissions temporarily changed to ‘Withdraw Only,’ with services limited to withdrawal, order cancellation, position close, and redemption.
This will be carried out in phases from now through Oct. 19, Binance noted.
Intermediate Verification requires users to upload a selfie and an image of their ID documents — such as passports, ID cards, and driver’s licenses. Users will also have to complete “face verification.”
Binance CEO Changpeng Zhao (CZ) tweeted Friday:
Mandatory KYC for all services at Binance. Action speaks louder than words.
He said earlier this week that regulatory compliance is Binance’s top priority and he is spending almost all of his time on compliance. Furthermore, the CEO said that Binance is looking to “significantly” increase its legal and compliance teams as the company pivots from a technology innovator into a financial services company.
A number of regulators worldwide recently issued warnings about Binance, including those in the U.K., Netherlands, Japan, Malaysia, Thailand, Germany, Cayman Islands, Lithuania, and Hong Kong.