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Customers that fail to meet the new requirements will only be allowed to withdraw funds, close positions, cancel orders and redeem tokens.
The world’s largest cryptocurrency exchange, Binance, has announced to introduce immediate customer verification requirements for all its end-users to show its support for global KYC (Know Your Customer) and Anti-Money Laundering (AML) standards.
The company announced to be making this move to secure the crypto platform from surging financial crimes and threats. Under the new requirements, each customer will be required to prove their identity through the submission of their official ID document along with the user’s photo for facial verification. By taking these steps, Binance aims to enhance user protection and risk assessment protocols.
Customers that fail to meet these new requirements will only be allowed to withdraw funds, close positions, cancel orders and redeem tokens.
The CEO of Binance, Changpeng Zhao, stated:
“Our vision is to create a sustainable ecosystem that is safe for all participants. In the last four years, we have laid the groundwork by investing heavily in security and user protection, supporting law enforcement from around the world with high-profile investigations and helping cybercrime victims recover millions of dollars worth of stolen funds.”
Mandatory KYC for ALL services @Binance.
Action speaks louder than words. https://t.co/EJupmQvStm
— CZ 🔶 Binance (@cz_binance) August 20, 2021
These steps have surfaced as Binance continues to face scrutiny from financial regulators worldwide due to rising concerns related to crypto frauds such as money laundering. In June 2021, UK’s Financial watchdog banned Binance from conducting regulated activity in the UK. Several other countries have also followed suit due to similar reasons this year.
By introducing procedures such as KYC verification, financial crimes related to cryptocurrencies can be avoided as a result of secure customer onboarding.
Suggested Read: The Case Against Cryptocurrencies: Where is it Banned & What’s Causing the Crackdown?