According to a recent update dated August 20, cryptocurrency exchange Binance announced that it had changed its Know Your Customer (KYC) rules for intermediate-level verification for all users.
Changpeng Zhao, founder and CEO of Binance, stated that:
“User protection is an integral part of our DNA and core values. Our vision is to create a sustainable ecosystem that is safe for all participants. In the last four years, we have laid the groundwork by investing heavily in security and user protection, supporting law enforcement from around the world with high-profile investigations and helping cybercrime victims recover millions of dollars worth of stolen funds.”
In the press release issued today, this change is justified by the exchange’s desire to ensure greater security for its customers, although it is more likely due to the problems the platform is having with regulators in several countries and therefore the desire to follow the regulations of the countries in which it operates.
And in fact, CZ goes on to say:
“We aim to work more collaboratively with policy-makers to improve global standards and discourage bad actors.”
How Binance’s KYC is being changed
The change in KYC rules, in fact, supports anti-money laundering and anti-terrorism regulations for greater control of platform users leads to avoid having terrorists and money launderers using Binance.
According to the new regulations, therefore, even those who have already passed the intermediate level of KYC will have to do it again; otherwise, they can only decide to withdraw and use another platform.
The problems of Binance in Italy and beyond
As mentioned, the exchange is having problems with the regulation in several European and non-European countries.
Just yesterday, the Central Bank of the Netherlands came out against Binance with an official warning because the trading platform does not comply with the Anti-Money Laundering (AML) and anti-terrorist financing (Wet ter voorkoming van witwassen en financieren van terrorisme, WWFT) regulations.
Also, in Italy last month, Consob expressed its opposition to the operation of Binance in the country as it would operate without the necessary authorizations.
Not only that, in Italy against the platform, there is also a class action to compensate a group of Italian and international investors.
Binance and regulation
Obviously, having all these different problems in Italy, Hong Kong, the Cayman Islands, and beyond, Binance has recently announced several initiatives to align itself with the various regulations of the different countries in which it operates, not least today’s one on KYC.
In fact, an Online Chat 5.0 has just been introduced to meet the demands of users, with the introduction of an artificial intelligence-based bot that helps users solve common problems immediately.
Binance has also updated its API service to ensure a safer and fairer trading environment for all and to remain compliant with the latest industry requirements.