Binance is a cryptocurrency exchange that is reportedly the largest globally in terms of daily cryptocurrency trading activity. It was founded in 2017 and is based in the Cayman Islands. Changpeng Zhao, a developer who previously built high-frequency trading software, found Binance. It was launched in China but eventually relocated its headquarters due to the Chinese government's increased control of cryptocurrencies.
Binance is now under inquiry by the US Department of Justice and the Internal Revenue Service for fraud and money laundering suspicions. Binance was ordered by the UK's Financial Conduct Authority to cease all regulated operations in the UK by June 2021.
The Binance Exchange: An Overview
The Binance exchange is best recognized for crypto-to-crypto trading—trading between two cryptocurrency pairs—and it has one of the lowest transaction costs among cryptocurrency exchanges. It has a high level of liquidity and provides discounts to those who purchase native BNB cryptocurrency tokens.
Binance is a fusion of the terms "bitcoin" and "finance." It promises to have strong safety and security requirements, a multi-tier and multi-clustered design, and high processing throughput—it claims to be able to handle roughly 1.4 million orders per second. It accepts more than 500 currencies for trade, including bitcoin, ethereum, litecoin, and its own native BNB tokens.
All Binance Users are Now Expected to Undergo Rapid KYC Verification
Binance has been in the spotlight of regulators throughout the world due to allegations that it operates unauthorized companies. As a result of the increasing investigation, the cryptocurrency exchange has officially announced additional Know Your Customer (KYC) rules for all platform users. As a result, existing users will have their services restricted until they comply with the new KYC and AML standards.
As a result of the increasing investigation, the cryptocurrency exchange has officially announced additional Know Your Customer rules for all platform users. As a result, existing users will have their services limited until they comply with the latest KYC and AML standards. According to a statement in the platform, effective instantly, all new users must complete Intermediate Verification to access Binance goods and service offerings, including cryptocurrency deposits, trades, and withdrawals. Furthermore, current users who were previously permitted to trade cryptocurrencies without verification will be limited to withdrawals, order cancellation, position closing, and improvement.
According to Binance, the shift in policy for existing users will be phased in to ensure minimal delays to the customer experience. However, customers will have full access to Binance products and services if their KYC is verified immediately. According to the company: Binance highly recommends customers complete their Intermediate Verification as soon as possible to prevent interruptions in the verification process and access controls.
KYC as an Anti-Money Laundering Method
The crypto exchange promises to apply KYC and anti-money laundering methods to safeguard investors from financial crimes. The primary verification on the Binance interface is currently expected to take one day. However, it will take a total of 20 days to evaluate all papers, including government ID, face verification, and proof of home address.
Binance has increased its attempts to address the criticism leveled at its business practices, primarily by authorities worldwide. On July 28, the cryptocurrency exchange limited withdrawal amounts for customers who had not finished full KYC verification. As a result of CEO Changpeng Zhao's statement, the daily withdrawal limit for unverified Binance customers has been reduced from 2 BTC to 0.06 BTC. Zhao has also shown his willingness to collaborate with regulators, despite the fact that the exchange has lately been cautioned for operating without a license in numerous countries.
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