Binance Implements Mandatory Identity Verification (KYC) Requirements
Luisa Crawford Apr 05, 2024 06:08
Binance has implemented KYC requirements for all sub-accounts created under its Link Program, with non-compliant sub-accounts facing restrictions and eventual account suspension.
Binance has informed its users that all sub-accounts created under the Binance Link Program must comply with enhanced compliance standards. This includes non-trading sub-accounts created solely for asset deposit purposes.
Starting from March 20, 2024, Binance has been applying restrictions to sub-accounts that have not completed the necessary Know Your Customer (KYC) documentation. By May 20, 2024, sub-account holders who have not provided the required KYC information will have their accounts fully restricted, losing access to the Binance Link Program services.
Exchange Link account holders, who are responsible for creating and managing sub-accounts, must ensure that their sub-accounts are fully integrated with the Link-KYC module. Furthermore, they must provide any additional user information on behalf of their sub-account holders upon request. This may include details regarding the source of funds, source of wealth, and proof of address.
Binance will only communicate directly with the Exchange Link account holders and will not be responsible for communicating with sub-account users. Therefore, it is crucial for account holders to relay any necessary information to their sub-account users.
To comply with Anti-Money Laundering (AML) regulations, Binance may require sub-account holders to complete a questionnaire for potential Politically Exposed Persons (PEPs). The questionnaire includes questions about PEP status, occupation/title, employer details, and relationship to a PEP.
Sub-accounts with incomplete KYC information will face various restrictions on their trading activities. Spot trading will be restricted, meaning users cannot place new orders and existing spot orders will be canceled. Futures trading will also be restricted, allowing users to reduce existing positions but not place new orders. Similarly, margin trading will be restricted to reducing existing positions only.
Restricted sub-accounts will be unable to receive deposits, and any misplaced deposits may take up to 45 days to be refunded. An administrative fee of $200 or equivalent will be charged per appeal, regardless of the deposit size. Binance advises all Exchange Link account holders to inform their sub-account users about these changes.
Binance emphasizes the importance of compliance with these identity verification requirements to ensure a secure, transparent, and user-friendly trading environment. Users are reminded to carefully consider their investment decisions and consult with a financial advisor before making any investment.
Image source: Shutterstock