Binance Says Its New Users Will Need To Complete KYC Before Accessing Products

Binance has announced that its customers will now onward be demanded to complete an average verification. The existing consumers will only have the withdrawal permission without completing their average level verification. It has been stated by the company that the move has been taken to improve its AML (anti-money laundering) regulations.

Obligatory KYC for the newcomers of Binance, the world’s biggest exchange of cryptocurrency, has declared that the new consumers entering the network will be required to complete the average level verification. There are three levels of user verification on the network. The basic level of verification only requires things like the legal name of the users, their address, as well as their email ID. The average level of verification demands the photos of the consumers’ government-provided IDs like a driving license, a passport. However, this rule is to be implemented on the newly arriving users on the exchange.

The newly implemented rule makes it compulsory for the new customers to upload photos of their IDs if they need to operate the platform for its trading services comprising of withdrawals as well as deposits. In the recent month, the company removed the routine withdrawal limit previously set for the users who were unverified previously. Today’s modification has again implemented back that measure for another time. The team of Binance has disclosed the currently working KYC verification rule to reach its goods as well as the services. As per the network, it has taken the step as a result of keenly observing the global standards of compliance.

The firm added that the taken decision will boost up the user security and confront financial crime. The existing consumers who do not take interest in undergoing this process will have the only option of withdrawal. This option will permit the users to wrap up their position and take out their crypto assets.

The promise of the CEO

While responding to the regulatory issues, Changpeng Zhao (the CEO of the company) made a promise to the users of the platform that the implementation of such proactive compliance would take transform the organization into a more regulated entity in the finance sector. It has previously appointed a former investigator from IRS to lead the AML efforts of the company. Zhao assured that compliance-related recruitments of Binance have expedited by 500% since the previous year.