Binance to restrict access to services until users complete identity checks
Binance, the world’s largest crypto exchange by trade volume, has today introduced new security checks as it seeks to placate regulators.
Binance is upping its Know Your Customer (KYC) requirements for new and existing customers and has announced that everyone must complete ‘Intermediate Verification’ in order to access services.
Existing users will have their permissions changed to “withdraw only,” with services limited to withdrawal, order cancellation, position close and redemption until they complete an identity verification process.
To unlock their accounts, users will have to complete a verification process which matches user selfies against official ID cards and can take up to ten days to review.
The news comes as Binance faces heat from regulators worldwide. In June, the UK’s Financial Conduct Authority issued a warning that Binance was “not permitted to undertake any regulated activity in the UK” prompting major banks to stop UK customers from making payments to the site.
Similar cautions have been issued by financial watchdogs in Hong Kong, Japan and the Cayman Islands who claim that the company had been providing financial services without proper permissions.
The move is evidence of Binance’s new regulatory strategy, with the company “pivoting from reactive compliance to proactive compliance” according to CEO Changpeng Zhao.
Today Binance issued a statement saying it “strongly advises” users to complete the checks “promptly” to avoid delays in the verification process and restrictions to their access.