Binance, a popular cryptocurrency exchange, has implemented new requirements for its Exchange Link account holders. The company has made it mandatory for users to go through a Know Your Customer (KYC) process in order to gain access to their sub-accounts. This applies to all sub-accounts, including those created solely for deposits and not for trading. Binance has been enforcing restrictions on non-compliant sub-accounts since March 20 and has given unverified sub-account holders until May 20 to submit their KYC information. If they fail to do so, they will be fully restricted from accessing Binance’s services.
Accounts with incomplete KYC information will have their deposits restricted, but they will still be allowed to withdraw their funds. Restricted accounts will not be able to place new orders in spot trading, and any existing orders will be canceled. In futures and margin trading, restricted accounts can’t place new orders but are permitted to reduce their existing positions.
Binance is holding the Exchange Link account holders responsible for providing any additional information on behalf of their sub-account holders. This includes details about their sources of funds, wealth, and proof of address. Binance has also introduced measures to identify sub-account users who may be involved in politics. Users who are politically exposed must reveal their position and employer information, and those related to Politically Exposed Persons (PEP) must disclose their relationship with the PEP.
In certain cases, Binance may freeze the funds in a sub-account and restrict access due to legal or compliance reasons. In such instances, the exchange may not be able to provide a detailed explanation for these actions. Binance has also emphasized that unresponsive or uncooperative Exchange Link account holders may have their accounts downgraded or their sub-accounts permanently deleted.
Binance’s nonfungible token (NFT) arm has announced that it will stop supporting Bitcoin Ordinals trades and deposits on April 18. This decision is part of the exchange’s efforts to streamline its offerings on the Binance NFT marketplace. Binance will no longer offer Bitcoin NFT-related airdrops, benefits, or utilities after April 10.
Binance is setting a high standard for other cryptocurrency exchanges by implementing KYC requirements. Safety and accountability are paramount.