Binance Enforces KYC Requirements and Halts Support for Bitcoin Ordinals Trades
Summary:
Binance, a cryptocurrency platform, is mandating Know Your Customer (KYC) procedures for all Exchange Link account holders in the Binance Link Program. As of May 20, sub-accounts failing to provide KYC information will lose access to Binance services. The crypto exchange will also restrict deposits for accounts with incomplete KYC, cancel pending trades, and could freeze funds for legal reasons. Also, Binance's non-fungible token (NFT) arm will stop supporting Bitcoin Ordinals trades and deposits from April 18.
In a recent statement, cryptocurrency platform Binance confirmed it is making Know Your Customer (KYC) procedures compulsory for all Exchange Link account holders participating in the Binance Link Program. Starting April 5th, exclusivity is granted solely to verified and regulation-abiding users for accessing sub-accounts. Regulations also extend to deposit-focused sub-accounts which are trade-free. As of March 20, Binance has been implementing limits on non-compliant sub-accounts, issuing a warning to unverified sub-account owners. The platform stated that by May 20, sub-accounts failing to provide the required KYC information will be entirely unable to access Binance Link Program services. Binance's actions regarding unverified subaccounts. (Source: Binance) KYC-deficient accounts will experience deposit restrictions but can withdraw funds. Trade-restricted accounts will be unable to execute new orders within spot trading and all currently placed orders will automatically be cancelled. For futures and margin trading, no new placements will be possible for restricted accounts, but users can reduce their existing positions. Binance stresses the responsibility for providing further information for their sub-account users falls on the Exchange Link account holders themselves. The information required comprises the origin details of funds and wealth, as well as proof of address. Binance has newly introduced procedures to identify any political affiliations of a sub-account user. Binance will request job and employer details in the instance of a politically-engaged user. Relations to Politically Exposed Persons (PEP) will also necessitate providing the details of such a relationship. An account's funds could potentially be frozen and access restricted by Binance due to legal and compliance matters. Binance elaborated: “Certain scenarios may not permit Binance to provide a comprehensive explanation for its actions to either Exchange Link account holders or their sub-account users, due to legal and compliance factors.” Uncooperative or non-responsive Exchange Link account holders risk losing access, leading to potential account downgrade or full deletion of sub-accounts. Related: Pending legal issues involving a Binance executive in Nigeria to be continued on April 19In further developments, Binance's non-fungible token (NFT) division has publicized its decision to discontinue support for Bitcoin Ordinals trades and deposits from April 18. Binance attributes this step to its ongoing pursuit to optimize its services within the Binance NFT marketplace. Binance will also discontinue all Bitcoin NFT-related airdrops, advantages, and utilities post April 10. Magazine: Amid KuCoin's $10M airdrop crisis, a lone tweet propels memecoin to raise $37M: Asia Express
Published At
4/5/2024 12:58:29 PM
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