Binance to improve its verification process

Fri 20 Aug 2021 ▪ 12h22 ▪ 3 min read — by Katie Donaldson

Binance will put the harshest known to date restrictions in order to prevent money laundering. The world’s largest crypto exchange has been heavily critiqued by finance regulators worldwide for illicit activity that’s been thriving in the red-hot but mostly unregulated market.

A series of unfortunate events for Binance

According to the exchange’s website, its users must go through a verification process, otherwise they won’t be able to withdraw funds, cancel orders and close positions – basically use any Binance services.

The exchange is still under investigation by the Justice Department and Internal Revenue Service for money laundering and tax offenses. 

“We take our legal obligations very seriously and engage with regulators and law enforcement in a collaborative fashion,” Binance spokeswoman Jessica Jung said when the investigation started in May.  “We have worked hard to build a robust compliance program that incorporates anti-money laundering principles and tools used by financial institutions to detect and address suspicious activity.”

American officials have previously expressed concerns that cryptocurrencies are being used to conceal illegal transactions, including theft and drug deals. There have been talks that American citizens who have made windfalls betting on the market’s quick rise are evading taxes. Such worries have been an obstacle to crypto adoption, even though many corporations have already embraced Bitcoin (BTC) and other tokens due to a global investing craze.

The Dutch central bank has announced on Monday that Binance isn’t in compliance with the international anti-money laundering and anti-terrorist financing laws.

New regulations

The exchange has dialled back its products offerings, including leveraged trading and tokens linked to equities, and said it wanted to improve relations with regulators.

The new measures include a requirement for all new users to complete intermediate verification to access Binance products.

Existing users who have yet to complete intermediate verification will have their account permissions temporarily changed to “Withdraw Only”, with services limited to withdrawal, order cancellation, position close, and redemption. 

Once users complete the process, they will be able to resume full access to exchange’s services. 

Binance is bringing in stricter customer checks for anti-money laundering requirements with immediate effect.

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Katie Donaldson avatar
Katie Donaldson

I went full time crypto back in June 2018, and have never looked back. I want to help persuade as many people as possible to come and build the decentralised future! Let’s go!


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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