Binance Enforces KYC Mandate For Sub-Accounts

Binance has implemented rigorous identity verification measures for all sub-accounts within its Binance Link Program in a recent update, with the goal of bolstering compliance standards. As per the latest changes, the exchange began enforcing limitations on sub-accounts without proper Know Your Customer (KYC) documentation starting from Mar 20, 2024.

Additionally, the company clarified that as of May 20, 2024, unverified sub-account holders will be subject to complete access restrictions and will no longer be able to utilize Binance Link Program services. Simultaneously, the revised policy requires Exchange Link account holders to incorporate the Link-KYC module to ensure compliance of all sub-accounts with heightened standards.

This entails furnishing comprehensive details on behalf of their sub-account holders, including Source of Funds, Source of Wealth, and Proof of Address. Highlighting the significance of thorough and precise user information for seamless onboarding, Binance clarified that it will exclusively liaise with Exchange Link account holders and will not assume responsibility for communicating with sub-account users.

Compliance Measures: Binance Sub-Account Regulations

Moreover, Binance reserves the right to ask for a declaration regarding Politically Exposed Persons (PEP) in order to conduct further examination of sub-account holders for compliance purposes. Sub-accounts lacking complete KYC information will be subject to a range of restrictions, encompassing constraints on deposits, spot trading, futures trading, and margin trading.

However, For legal and compliance purposes, money may occasionally be frozen and access to subaccounts restricted. Additionally, Binance has instituted an administrative fee for the appeal procedure pertaining to lost or missing contributions, highlighting the necessity for Exchange Link account holders to notify users of their sub-accounts.

Colin Wu, a crypto journalist from China, recently posted on his Wu Blockchain page, discussing the latest developments from Binance. According to his update, Binance’s is launching a project inspired by ideas from BitMEX co-founder Arthur Hayes, enabling users to engage in a three-day farming of ENA tokens.

Related Reading | Navigating Binance Exchange Link Program: Restrictions On Unverified Sub-Accounts

The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.

Comments (No)

Leave a Reply