Cryptocurrency giant Binance has unveiled new mandatory know-your-customer (KYC) regulations for users of its Exchange Link program, which includes Binance Link accounts.
Effective April 5, Binance announced that only fully verified and compliant users would have access to its sub-accounts. This requirement extends to sub-accounts created solely for deposit purposes, even if they are not utilized for trading activities.
Binance disclosed that it began implementing restrictions on non-compliant sub-accounts as early as March 20, issuing warnings to unverified holders. By May 20, sub-accounts failing to furnish the requisite KYC details will face complete restrictions from accessing Binance Link services, while accounts with incomplete KYC information will be subject to deposit limitations but allowed to make withdrawals.
In terms of trading, restricted accounts will be unable to initiate new orders in spot trading, with all existing orders set to be canceled. Similarly, restricted accounts in futures and margin trading will be unable to place new orders but can reduce existing positions.
Additionally, Binance emphasized the responsibility of Exchange Link account holders to provide any necessary supplemental information on behalf of their sub-account holders, including details related to their source of funds, wealth, and address. The exchange has also introduced measures to identify politically exposed persons (PEPs) among sub-account users, requesting job title and employer details from such individuals, along with information about their relationship with the PEP.
Furthermore, Binance highlighted its authority to freeze funds and restrict access to subaccounts for legal and compliance reasons. In cases where detailed explanations cannot be provided to Exchange Link account holders or their sub-account users due to legal constraints, Binance reserves the right to take necessary actions. This could include demotion of the account and complete deletion of its sub-accounts for unresponsive or uncooperative behavior. Meanwhile, Binance's non-fungible token (NFT) arm announced plans to discontinue support for Bitcoin Ordinals trading and deposits starting April 18, as part of streamlining efforts for the Binance NFT marketplace. Additionally, airdrops, perks, and utilities associated with Bitcoin NFTs will cease after April 10.
