Binance is the largest crypto exchange by trade volume. It was founded in 2017 by Changpeng Zhao, a developer who previously built high-frequency trading software. It was launched in China first but eventually relocated to the Cayman Islands since the Chinese government increased the control of cryptocurrencies.
Binance is now under interrogation by the US Department of Justice and the Internal Revenue Service for fraud and money laundering suspicions. And The UK's Financial Conduct Authority ordered Binance to cease all regulated operations in the UK by June 2021.
The Binance Exchange: An Overview
The Binance exchange is best known for its crypto-to-crypto trading, and it has one of the lowest transaction costs among cryptocurrency exchanges. It also provides discounts to those who purchase its token, BNB.
Binance is a fusion of "bitcoin" and "finance." It promises to have strong security walls. It also claims to handle roughly 1.4 million orders per second. In addition, it accepts more than 500 currencies for trade, including bitcoin, Ethereum, Litecoin, and BNB tokens.
All Binance Users are Now Expected to Undergo Rapid KYC Verification
Binance has been in the spotlight of regulators worldwide 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 users. Existing users' actions will be limited until they comply with the latest KYC and AML standards. According to a statement on the platform, 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 immediately if their KYC is verified. According to the company: Binance highly recommends that 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 methods to safeguard investors from financial crimes. It is expected to take 20 days for Binance to evaluate their customers' governmental papers, such as government ID, proof of home address, and government ID.
Authorities worldwide criticize Binance's business practices. The crypto exchange limited withdrawal amounts for customers who didn't finish their KYC verification. The daily withdrawal limit for unverified users was reduced from 2 Bitcoin to 0.06 Bitcoin on July 28. The CEO Changpeng Zhao has shown willingness to collaborate with regulators even though the company has been caught operating in many countries without a proper license.
Crypto exchanges can comply with Anti-Money Laundering regulations using Sanction Scanner's AML Name Screening Software, PEPs, and Adverse Media Screening. If you have any questions, you can reach out to us.