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 world’s largest cryptocurrency exchange said on Aug. 20 that beginning immediately, all customers would be required to fill out Know Your Customer, or KYC, information forms to make any trades.
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.
The change in policy is the latest move in what CEO Changepeng “CZ” Zhao called the company’s August pivot “from reactive compliance to proactive compliance.”
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 Struggles
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.]
Brooks, a former U.S. bank regulator and general counsel of top competitor Coinbase, resigned after a $100 million venture funding round aimed at diversifying ownership fell through, the New York Times reported on Aug. 19. That was due to concerns about ongoing U.S. regulatory investigations, it added.
The Times said Binance.US CFO Joshua Sroge had been appointed interim CEO.
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.”
Sept. 1, 12:00 EST: This article was updated to remove mentions of Binance.US, an entity unrelated to Binance and its KYC measures.
