Binance is striving to become more compliant with regulatory requirements. Now the cryptocurrency exchange is tightening its requirements for the Know Your Customer (KYC) procedure.
Accounts that do not provide the required information to the marketplace will lose access to the Binance Link program and will be blocked. This is stated in the official notification sites.
What does it mean
Starting March 20, the crypto platform restricts access to subaccounts that have not passed KYC verification. If they do not transfer the relevant documentation to the site by May 20, they will be frozen. Additionally, any non-compliant clients will also lose access to Binance Link.
Binance Link is a program launched in 2020. It allows corporate clients to develop their business using the platform’s technologies and make a profit from trading commissions.
Exchange Link account holders who are responsible for creating and managing sub-accounts must ensure that the latter are fully integrated with the Link-KYC module. They will also be required to provide the crypto exchange with any additional user information upon request, including:
- information about the source of funds and wealth;
- address confirmation.
To comply with anti-money laundering (AML) regulations, Binance may require sub-account holders to complete a Potential Politically Exposed Person (PEP) questionnaire. It contains questions about PEP status, occupation/title, and employer information.
Binance is committed to compliance
Following a settlement with US authorities at the end of 2023, Binance is taking increasing steps towards full compliance with regulatory requirements. So, last week the platform joined the Global Travel Rule (GTR) organization and will now monitor and transmit all transactions exceeding $1 thousand.
In addition, for the first time since its founding in 2017, the trading platform revealed the composition of its board of directors. It included seven people: three top managers who have been working at Binance since the opening, and three external members.
However, according to some experts, the cryptocurrency project continues to resist external control and supervision, despite proceedings with regulators. The main reason for such criticism is the lack of independent members on the board.
Source: Cryptocurrency
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