Binance Implements Mandatory Identity Verification (KYC) Requirements

Binance has implemented KYC requirements for all sub-accounts created under its link program, with non-compliant sub-accounts facing restrictions and possible account suspension.

Binance informs its users that all sub-accounts created under the Binance Link program must meet the enhanced compliance standards. This includes non-trading sub-accounts created solely for the purpose of depositing assets.

Starting on March 20, 2024, Binance will apply restrictions to sub-accounts that have not completed the required Know Your Customer (KYC) documentation. Until May 20, 2024, the accounts of sub-account holders who have not provided the required KYC information will be completely restricted, losing access to Binance Link Program services.

Exchange Link account holders who are responsible for creating and managing sub-accounts must ensure that their sub-accounts are fully integrated with the Link-KYC module. In addition, they must provide additional user information on behalf of their subaccount holders upon request. This may include details of source of funds, source of wealth and proof of address.

Binance will only communicate directly with Exchange Link account holders and will not be responsible for communications with sub-account users. Therefore, it is extremely important for account holders to pass on any necessary information to users of their sub-accounts.

To comply with anti-money laundering (AML) regulations, Binance may require sub-account holders to complete a Potentially Politically Exposed Persons (PEP) questionnaire. The questionnaire includes questions about PEP status, occupation/title, employer details and relationship with PEP.

Sub-accounts with incomplete KYC information will face various restrictions on their trading activities. Spot trading will be limited, meaning users cannot place new orders and existing spot orders will be cancelled. Futures trading will also be restricted, allowing users to reduce existing positions but not place new orders. Likewise, margin trading will be limited to shorting existing positions only.

Restricted sub-accounts will not be able to receive deposits and any misplaced deposits may take up to 45 days to be refunded. An administrative fee of $200 or equivalent will be charged for each appeal, regardless of the amount of the deposit. Binance advises all Exchange Link account holders to inform their sub-account users of these changes.

Binance emphasizes the importance of complying with these identity verification requirements to ensure a secure, transparent and user-friendly trading environment. Users are reminded to carefully consider their investment decisions and consult a financial advisor before making any investment.

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