According to the exchange, this verification is intended to protect users and provide a “safe crypto environment” “.
Binance has announced new measures to bring the world’s largest cryptocurrency exchange in terms of volume in line with regulatory requirements across the globe.
In the announcement released on Friday, the cryptocurrency exchange noted that it is now instituting mandatory know-the-customer (KYC) processes for all customers.
The exchange advised its customers and potential users that they had to complete the interim verification process if they wanted to access all services on the platform. The changes are “effective immediately” for all new customers, Binance noted.
According to the platform, new users will only have access to services such as deposits, withdrawals and cryptocurrency trading after verifying their identity.
This requirement also extends to existing Binance users who still need to perform the intermediate verification. This user group will have their account switched to “Withdrawals only” mode, which will limit access to all services and products, except for transactions related to withdrawals, order cancellations or closing trading positions.
The platform urged its users to undertake the verification process “quickly” in order to avoid delays as well as potential restrictions.
According to Binance, the review of its KYC policies is necessary to protect all users in a changing global compliance environment. The review also comes amid a broader regulatory crackdown that has put the exchange under heavy pressure in recent months.
Many countries have recently turned the spotlight on Binance, including the United States, the United Kingdom, Germany, the Cayman Islands and Spain.
Pressure from financial watchdogs in these and other countries has seen the leading crypto platform rethink its strategy and put in place measures that not only ensure the implementation of KYC, but also those that help advance its anti-money laundering (AML) controls.