Binance has modified the terms of its verification policy as part of efforts to comply with financial regulations.
Revision To User Account Policy
In a move to meet compliance standards, the world’s top crypto exchange, Binance, has updated the terms associated with users’ account verification.
The update is to make the exchange’s operations align with global standards more so as the exchange has come under intense regulatory scrutiny in recent times.
Binance announced the updates in a blog post on September 15:
“As part of our compliance efforts to prioritize user protection and provide a safe crypto environment for all, Binance is updating the following terminologies in relation to user account verification status…”
According to Binance, the new terminologies took effect from September 17, 00:00 UTC.
What has changed?
Previously, a user account on Binance could fall under three categories of user verification: basic, intermediate, and advanced.
As of then, accounts in the lowest verification category – basic, could trade and withdraw a limited amount of crypto. Basic accounts were not subjected to Know-your-customer (KYC) checks. However, this is no longer so.
The verification tiers have changed as follows:
Basic Verification: this tier no longer exists. Users who have not passed KYC requirements would no longer be able to trade.
Intermediate Verification: this would now be known as “Verified.”
Advanced Verification: the new term for advanced verification is now “Verified Plus.“
Accordingly, with effect from August 20, new user accounts need to at least pass “Verified” KYC requirements to make use of Binance’s services. Existing unverified accounts will be put in a “withdraw only” mode; Unverified accounts will not be able to trade but will have full services restored only after passing verification.
Binance Is Evolving
Lately, the prying eyes of financial regulators in different parts of the world have beamed their searchlight on Binance. Early in the year, the exchange was probed by the American Commodities Futures Trading Commission (CFTC), followed by regulatory interventions by the UK’s Financial Conduct Authority (FCA), Malaysia, and among several others.
Going by the new changes in Binance’s verification policy, it is persuasive that the exchange is not opposed to compliance with the regulation. These kinds of moves by Binance do the crypto industry a world of good.
On the one hand, the exchange will have good relationships with financial regulators and governments of its countries of operation. On the other hand, users’ confidence in the exchange will be boosted by the knowledge that Binance conducts its operations in compliance with jurisdictional laws.
They show steps toward compliance that even passive investors can agree with, too. Binance must secure the trust of these critical stakeholders for the exchange, and crypto in general, to remain in bloom.
Source : bsc.news
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