The regulatory pressure on Binance, the world’s largest cryptocurrency exchange, continues to show its effects. After the warnings it received from the regulators, Binance decreased the withdrawals to be made without KYC, that is, identity verification, and now it is increasing it.
KYC regulations are very important for many cryptocurrency exchanges, and for this reason, it is even possible for exchanges to be closed. Recently, the US-based giant cryptocurrency exchange Kraken has also started to implement stricter KYC conditions, and Binance has also chosen this path. It is stated that Binance will tighten and complicate the KYC requirements, according to newly reported news.
Users will now go through high-level verification to make deposits, trades or withdrawals. With this step, it will be easier for institutions to find the user in case of possible doubt. It may be possible for Binance to ask for more than just verifications like normal credentials and address information, or to do additional research from now on.
Binance recently appointed Greg Monahan, one of the important names in the world of anti-money laundering, to head its own unit and showed how important steps it would take in this regard.
Pressure on Binance continues to increase, and the CFTC allegedly launched an investigation against Binance within the US. Although the source is not given in the Bloomberg news, the situation seems a little serious.
Binance, on the other hand, has taken such steps to avoid problems in these situations.