The world’s largest cryptocurrency exchange has toughened its Know-Your-Customer ID requirements as it ‘pivots’ towards more aggressive compliance policies.
Binance has announced that all customers must now provide proof of identity for any transactions.
The only exception is that existing customers will be allowed to withdraw funds, cancel orders, close positions, and redeem funds.
The latest announcement is to help support Binance’s “efforts in Know Your Customer (KYC) and Anti-Money Laundering (AML)” compliance. “This will further enhance user protection and combat financial crime,” the release added.
That came after a string of regulatory actions across Europe, Asia, and the United States in recent months, including the U.K., Japan, Thailand, Malaysia and South Korea. The company also discontinued derivatives offerings in several European countries.
Specifically, Binance is ending what it refers to as “Basic Personal Verification,” which only required a statement of name and address, and took about a day for approval.
The new minimum is Intermediate, which requires government-issued ID and a picture of the customer. This takes 10 days to be approved, and is used by about 80% of Binance customers. Advanced Personal Verification adds proof of address to the requirements, and unlocks a higher fiat withdrawal limit.
Binance.US has struggled in recent days, with its high-profile new CEO Brian Brooks resigning after just three months over what he called strategic differences.
Binance.US is a separate company that is unrelated to Binance other than licensing its technology and name, both companies have said. Both are largely owned by Zhao. [CoinMarketCap is also owned by Binance.]
Sroge reportedly said the company still plans to raise external funds and expand its “board of directors with experienced leaders, among other initiatives consistent with those pursued by fast-growing private companies.”