The world’s leading cryptocurrency exchange, Binance, has announced mandatory KYC procedures for all services.
Know-Your-Customer (KYC) is a standard tool used by institutions to track financial transactions around the world. It involves the verification of a customer’s identity before they can make any deposits, withdrawals, or transfers of funds.
Due to growing concerns amongst regulators around the world that cryptocurrency is being used to launder money, stricter KYC enforcement is being enacted.
At 7:00 am (GMT) today, Binance announced via its official blog and Twitter account that all its services would require KYC going forward. According to the blog:
“Effective immediately, all new users are required to complete Intermediate Verification to access Binance products and service offerings, including cryptocurrency deposits, trades and withdrawals.”
Any accounts that don’t enact KYC procedures will have their “account permissions temporarily changed to “Withdraw Only”, with services limited to withdrawal, order cancellation, position close, and redemption.”
Binance CEO Changpeng Zhao also announced the news via his Twitter account:
Mandatory KYC for ALL services @Binance.
Action speaks louder than words. https://t.co/EJupmQvStm
— CZ 🔶 Binance (@cz_binance) August 20, 2021
The notice goes on to explain that Binance is enacting these measures to further its KYC and Anti-Money Laundering (AML) efforts to combat financial crime.