CDS Crypto News New Regulations: Binance Cracks Down on Unverified Sub-Accounts in Exchange Link Program
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New Regulations: Binance Cracks Down on Unverified Sub-Accounts in Exchange Link Program

Sub-accounts lacking proper KYC information will face complete restriction by May 20th.

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New Regulations: Binance Cracks Down On Unverified Sub-Accounts In Exchange Link Program

Crypto News- In a recent update, Binance, the leading cryptocurrency exchange, has mandated Know Your Customer (KYC) verification for all participants in its Exchange Link program. Effective immediately, only users who are verified and compliant with KYC regulations will retain access to their sub-accounts within the Binance Link Program.

New Regulations: Binance Cracks Down on Unverified Sub-Accounts in Exchange Link Program

This decision, announced on April 5th, marks a significant shift in Binance’s approach to account security and regulatory compliance. Notably, the requirement extends to sub-accounts created solely for deposit purposes, irrespective of their trading activity.

Binance has been progressively imposing restrictions on non-compliant sub-accounts since March 20th, issuing ultimatums to unverified users. By May 20th, any sub-accounts lacking complete KYC information will face full restrictions within the Exchange Link Program, with deposit capabilities limited to withdrawals only.

Under the new guidelines, restricted accounts will face limitations on trading activities. In spot trading, they will be unable to place new orders and all existing orders will be canceled. Similarly, in futures and margin trading, new orders will be prohibited, although existing positions can be reduced.

Furthermore, Binance emphasizes the responsibility of Exchange Link account holders to provide comprehensive information on behalf of their sub-account users, including details on the source of funds, wealth, and proof of address.

Enhanced Compliance: Binance Implements Measures for Identifying Politically Exposed Persons (PEPs)

In a move towards enhanced compliance, Binance has introduced measures to identify politically exposed persons (PEPs) among sub-account users, requiring them to disclose their positions and employer details. Additionally, individuals associated with PEPs must provide information on their relationship with the politically exposed individual.

Binance reserves the right to freeze funds and restrict account access for legal and compliance reasons, with explanations withheld in some instances for legal purposes.

Regulatory Compliance Enforcement: Binance’s Response to Unresponsiveness

In cases of unresponsiveness or non-cooperation, Binance may downgrade accounts and delete sub-accounts entirely, underscoring the importance of cooperation with regulatory requirements.

Meanwhile, Binance’s non-fungible token (NFT) division has announced the discontinuation of support for Bitcoin Ordinals trades and deposits starting April 18th. This move aligns with Binance’s efforts to streamline its NFT marketplace offerings, with Bitcoin NFT-related airdrops, benefits, and utilities also set to cease after April 10th.

New Regulations: Binance Cracks Down On Unverified Sub-Accounts In Exchange Link Program

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