The crypto exchange will limit services for existing users unless they adhere to the new KYC and AML requirements.
Binance has been in the regulatory cross-hairs of jurisdictions across the globe amid claims of it operating unlicensed businesses. As remediation of the ongoing scrutiny, the crypto exchange has publicly announced new Know Your Customer (KYC) requirements for all users on the platform.
“Effective immediately, all new users are required to complete Intermediate Verification to access Binance products and service offerings, including cryptocurrency deposits, trades and withdrawals,” a statement said.
Moreover, existing users who were previously allowed to trade cryptocurrency without verification will be allowed to only process “withdrawals, order cancellation, position close, and redemption.”
According to Binance, the change in policy for existing users will be rolled out in phases to ensure minimal disruptions in user experience. However, immediate KYC verifications will allow the users to have complete access to Binance products and services. The company said:
“Binance strongly advises users to complete their Intermediate Verification promptly to avoid delays in the verification process and restrictions on their access.”
The crypto exchange claims to implement KYC and Anti-Money Laundering measures as a way to enhance investor protection against financial crimes.
Currently, the basic verification on the Binance portal is estimated to get processed in one day. However, verifying all documents, including government ID, facial verification and proof of residential address will require a total of 20 days to review.
Related: Binance cuts withdrawal limits, rolls out tax reporting tool
Binance has amped up efforts to counter the criticism its business operations currently face, mainly from regulators around the world. On July 28, the crypto exchange limited the withdrawal amounts for users who did not complete full KYC verification.
As a result of this announcement made by CEO Changpeng Zhao, the daily withdrawal limit for unverified Binance users dropped to 0.06 Bitcoin (BTC) from the previous limit of 2 BTC.
Zhao has also shared his intentions to work with regulators as the exchange has been recently warned for operating unlicensed in several countries.
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