As a global cryptocurrency exchange facing increasing scrutiny from regulators, Binance has introduced a user verification policy for asset and institutional protection from criminal activity.
Binance introduces ‘Intermediate Verification’
KYC regulations have become essential for crypto exchanges to comply with, if they want to continue gaining mainstream approval, and comply with regulators. Recently, Kraken announced tighter KYC restrictions in the U.S. for margin traders, and Binance is looking to strengthen its user protection by enforcing user verification. Much like financial service providers are required by regulators globally to have KYC policies to curb illegal activities, Binance is seeking to be proactive as a crypto exchange that handles significant assets on behalf of its users.
In order for users to now access Binance’s product offerings and services, including deposits, trades and withdrawals, an intermediate verification step is required. This kind of step is important for institutions that handle significant assets on behalf of their users, so that they have knowledge of their users and who their users do business with. This knowledge protects both the institution and the assets.