Binance, the world’s largest cryptocurrency exchange by trading volume, has implemented a required KYC verification process for all users. The recent announcement appears to be part of the company’s commitment to healing fences with authorities worldwide.
The exchange stated that all new customers would be forced to complete KYC verification first and asked existing users to do so as soon as possible. Existing users who have not completed their KYC will have their account status modified to “Withdraw Only,” restricting account actions to withdrawal, order cancellation, position close, and redemption. KYC verification would occur in stages.
“This will be carried out in phases to minimize user-experience disruption, from now through 2021-10-19 00:00 AM (UTC). Existing users will be informed directly with more details. Once users complete the Intermediate Verification, they will be able to resume full access to Binance products and services.”
Changpeng Zhao (CZ), Binance’s CEO, has stated that the company’s first priority will be to bolster its regulatory position. He also stated that he is prepared to step aside in favor of someone with considerable regulatory experience who can assist the exchange in overcoming its current regulatory challenges.
Binance Attempting to Keep Up With the Competition
In July, the world’s largest cryptocurrency exchange found itself in regulatory hot water once again, this time after almost a dozen countries issued warnings about the exchange’s illegal activity. Binance has taken a series of steps since the regulatory awakening to ensure it adheres with local regulatory rules in the countries in which it operates. Additionally, the cryptocurrency exchange has committed to establishing regional headquarters in each country in which it operates.
To begin, it ceased issuing its much-hyped stock tokens in response to mounting concerns from German regulators. It also reduced its high leverage trading limit from over 100X to 20X and later ceased offering crypto derivatives across Europe and Hong Kong.
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