Binance, a leading cryptocurrency exchange, has announced the enforcement of Know Your Customer (KYC) requirements for holders of sub-accounts under its Exchange Link Program. This move aims to enhance compliance and security within its platform. By May 20, all sub-accounts lacking the requisite KYC information will face full restrictions from utilizing the Exchange Link Program services.
Strengthening Compliance Measures
Starting March 20, Binance began imposing limitations on non-compliant sub-accounts, signaling a transition towards stricter regulatory adherence. The exchange emphasizes the necessity for complete KYC documentation, not only for main account holders but also for all associated sub-accounts, including those utilized merely for deposits without engaging in trading activities.
Impact on Sub-Account Operations
Sub-accounts failing to meet the KYC submission deadline will encounter a series of operational restrictions:
- Deposits: Accounts with incomplete KYC will see deposit functionalities curtailed, albeit withdrawal capabilities will remain unaffected.
- Trading: Affected accounts will be prohibited from initiating new orders in spot trading and will have existing orders canceled. In the realms of futures and margin trading, while new orders will be disallowed, the reduction of existing positions will be permissible.
Additional Information Requirements
Binance also mandates Exchange Link account holders to furnish supplementary details for their sub-account users. This includes information concerning the source of funds, wealth, proof of address, and, notably, an assessment of political exposure. Users identified as politically exposed persons (PEP) or those related to PEPs are required to provide specifics about their position, employer, and the nature of their relationship with the PEP.
Legal and Compliance Considerations
The exchange reserves the right to freeze funds and restrict access to sub-accounts for legal and compliance reasons. In certain instances, Binance may be unable to disclose the specific reasons behind such actions to the account holders, underscoring the exchange’s commitment to regulatory compliance.
Additionally, Binance warns that uncooperative behavior could lead to the downgrading or complete deletion of Exchange Link accounts and their respective sub-accounts.
Streamlining Efforts
In related news, Binance’s NFT arm has declared an end to support for Bitcoin Ordinals trades and deposits by April 18, as part of its broader strategy to streamline its service offerings. This includes discontinuing Bitcoin NFT-related airdrops, benefits, and utilities after April 10, further indicating Binance’s commitment to refining its product suite in alignment with regulatory standards and operational efficiency.
