Cryptocurrency exchange Binance has recently announced new measures regarding user verification for sub-accounts. Effective April 20th, users who have not completed the required Know Your Customer (KYC) information will no longer have access to sub-accounts created through the Binance Link program.
The change specifically impacts sub-accounts designated for depositing cryptocurrencies. Binance Link, initiated in September 2019, allows businesses to utilize Binance's technology through a plug-and-play API. Going forward, users with Exchange Link accounts must complete KYC verification, which may involve providing details such as the source of funds and proof of address.
Failure to provide complete KYC information will result in restrictions on deposit transactions for sub-accounts. Users will be unable to place new orders, maintain existing ones, or engage in futures and margin trading without relevant verification. Additionally, asset blocking and limitations on receiving deposits may be imposed under certain circumstances.
Binance's decision to enforce stricter KYC measures for sub-accounts aligns with regulatory requirements and aims to enhance user safety and transparency in financial transactions. By fostering compliance and risk reduction, the exchange seeks to create a more secure environment within the cryptocurrency ecosystem. As the industry expands, initiatives like these play a crucial role in promoting accountability and reliability for all participants.
