Attaching to regulatory standards is necessary for Binance, the prominent cryptocurrency exchange. Recently, it mandated Know Your Customer (KYC) verification for all Exchange Link account holders enrolled in the Binance Link Program.
On April 5, Binance issued a directive stating that only verified and compliant users would gain access to their sub-accounts. This rule extends to sub-accounts created solely for deposit purposes, not utilized for trading activities.
The exchange acknowledged implementing restrictions on non-compliant sub-accounts since Mar 20, granting an injunction to unverified sub-account holders. By May 20, sub-accounts that fail to submit the requisite KYC information will face full restrictions, preventing access to Binance Link Program services.
Providing clarity on account restrictions is vital. Accounts lacking proper KYC details will experience limitations regarding deposits, yet withdrawals remain accessible.
Regarding trading activities, these restricted accounts cannot initiate new spot trades, with existing orders facing cancellation. For futures and margin trading, while new positions are disallowed, reducing existing ones remains permitted.
Binance has clarified that Exchange Link account holders bear responsibility for providing supplementary information on behalf of their sub-accounts. This encompasses details on fund sources, wealth origins, and address verification.
Binance Compliance Measures Discussed
The exchange further indicated its ability to freeze funds within a sub-account and limit access due to legal and compliance requirements. They stated:
“In certain instances, Binance may not furnish Exchange Link account holders or sub-account users with exhaustive explanations due to legal and compliance constraints.”
Additionally, the exchange emphasized its capacity to restrict access for unresponsive or uncooperative Exchange Link account holders, potentially resulting in downgraded accounts and the complete deletion of their sub-accounts.
Binance’s NFT division revealed plans to discontinue its support for Bitcoin Ordinals trades and deposits effective April 18 in a separate development.
This decision aligns with the exchange’s strategy to refine its offerings within the Binance NFT marketplace. Additionally, Binance’s will halt the distribution of Bitcoin NFT-related airdrops, benefits, and utilities as of April 10.
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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.
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