- Binance has announced more stringent know-your-customer (KYC) measures for sub-accounts within the Binance Link program.
- The exchange continues to implement more measures in an effort to meet regulatory requirements around the world.
Binance is introducing stricter know-your-customer (KYC) measures for sub-accounts beginning April 20th. The world’s largest crypto exchange by trading volume has in recent months taken proactive measures to comply with regulatory requirements from world governments.
The exchange revealed that users operating unverified accounts or ‘sub-accounts’ under the Binance Link Program that do not require KYC information as well as sub-accounts created for cryptocurrency deposits alone will be limited. Once enforced, sub-accounts that do not meet KYC requirements will have deposit restrictions, and will not be able to place new orders.
Launched in September 2019, the Binance Link program empowers businesses to leverage Binance’s technology and deep liquidity. It provides a user-friendly “plug and play” API that integrates seamlessly with various platforms, including exchanges, asset managers, trading bot services, and cryptocurrency wallet providers. This allows businesses to enhance their crypto offerings without extensive development work.
Binance began requiring its clients to prove KYC verification in 2019 as the exchange faced regulatory pressure from a number of countries. With cryptocurrencies receiving mass adoption, governments have pointed out that they have increasingly been sought by criminals to fund their activity. Working through exchanges, these organization needs to vet their customers, requiring information such as names, and addresses and providing sources of funds.
Since 2019, Binance has made a tremendous effort to remain compliant with the regulatory framework. However, the exchange was hit with a $4.3 billion fine, with its CEO Changpeng Zhao stepping down after both pleaded guilty to U.S. charges over money laundering and other financial crimes. Since then, the exchange has doubled down on its efforts to remain compliant in the U.S. and across the world under the new leadership of Richard Teng.
Former CEO Zhao has recently announced his next project. According to the announcement on the X platform, CZ will be focusing on a free basic education platform dubbed Giggle Academy.
My next project. @GiggleAcademy (No logo yet)
Free basic (grade 1-12 ish) education, for all.
No revenue.
Gamified.
Adaptive.Read the Concept Paper at https://t.co/knqmZF0sQ8
We are HIRING. Small team, work directly with CZ.
— CZ 🔶 BNB (@cz_binance) March 19, 2024
As CNF reported last month, Binance has directed prime brokers, including FalconX and Hidden Road, to gather client details to identify US investors as it looks to enhance compliance. Since the collapse of FTX in 2022, U.S. regulators have taken an interest in crypto firms with a focus on investor protection.
Binance is committed to investor protection amidst growing adoption as it aims to become the top crypto exchange in the world.
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