Binance, the leading cryptocurrency exchange, has unveiled more stringent know-your-customer (KYC) measures.
Starting from Apr. 20, unverified users without the required KYC information will no longer have access to their sub-accounts that were created as part of the Binance Link program.
This measure will also affect the sub-accounts that were created only for depositing cryptocurrencies.
The Binance Link program, which was launched in September 2019, makes it possible for enterprises to scale their businesses with the help of Binance’s technology. It offers “plug and play API” to various customers such as exchanges, asset managers, trading bots, cryptocurrency wallet providers and so on.
From now on, Exchange Link account holders are required to pass KYC in to continue using the services. The information that they might be required to provide includes the source of funds, proof of address and so on.
Sub-accounts without complete KYC information will have their deposits restricted. Such users will not be able to place new orders or keep their existing orders. Futures and margin trading will also not be available for those with incomplete KYC information.
Binance has further noted that assets to sub-accounts may be blocked in certain cases, and such accounts will also not be able to receive deposits.
In August 2021, Binance introduced mandatory KYC verification for all of its existing users. These restrictions came after the exchange started facing growing regulatory scrutiny around the globe.