The global crypto exchange Binance is making a major change to its know-your-customer (KYC) policy.
CEO Changpeng Zhao just announced that Binance is significantly lowering the amount of cryptocurrency that certain traders can withdraw per day.
The platform now requires users to complete their identity verification to increase daily withdrawal limits up to 100 BTC. Users without full KYC will see a lower cap.
“We’re enhancing our KYC efforts to further our leadership in this area.
Daily withdrawal limits will be adjusted from 2 BTC to 0.06 BTC (roughly ~$2,000 USD) for accounts who have only passed Basic account verification.”
Zhao says it’s clear “heavy regulations” should be expected. The announcement comes as Binance faces scrutiny from financial regulators around the world.
In June, UK’s Financial Conduct Authority (FCA) barred the exchange from engaging in regulated activities. Earlier this month, Hong Kong’s Securities and Futures Commission (SFC) and Lithuania’s central bank also issued warnings about the firm’s unlicensed services.
Zhao says that Binance is taking steps to comply with regulatory standards as it seeks to become a financial institution.
“We have commenced processes for licenses and approvals where there is an existing legal framework for crypto exchanges. This includes ongoing work across Asia-Pacific, EMEA and Latin America. We will actively work with regulators as more crypto-specific frameworks are introduced.”
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