A notice about strengthening restrictions linked to customer identification verification came on Binance’s official Twitter account. As a result, new users will be asked to produce official identification and undergo obligatory KYC verification to comply with regulatory standards.
In addition to new clients, the innovation will affect existing users by requiring them to complete KYC. Without it, their accounts’ functionality will be limited to withdrawing funds, closing positions, repaying, and canceling orders. All other functions will be disabled while an “interim” or “complete” review is conducted.
Users can choose between three types of verification on the exchange: “basic,” “intermediate,” or “advanced.” First, just ask for the client’s name and date of birth. The second stage will necessitate the use of a state document from the nation of residency and the attachment of a selfie. Finally, the most “advanced” level of verification necessitates a person to enter all of the previously given information and validate their address.
At the same time, the basic application will be considered for no more than one day, and the intermediate and complete applications will be considered for up to ten days each. The exchange team promised to make the intermediate check faster after the innovation, but the full check will take roughly 20 days.
Binance is on a regulatory path that does not appear to be changing. The exchange is making increasing attempts to comply with the countries’ regulatory requirements in which it operates.
Earlier, the trading platform’s CEO discussed plans to collaborate with regulators worldwide to avoid future issues caused by a shortage of licenses. Furthermore, the exchange hires employees who have previously worked in international governance systems regularly.
Binance stated that the policy change would be gradual so that rapid modifications from the exchange do not disrupt users’ interactions. The final application of the announced control measures has been slated for October 19, 2021, at 00:00 UTC.