The prominent crypto exchange Binance has recently declared that it will impose strict KYC requirements. In this respect, the platform asserted that only the complying consumers will have permission to enter their sub-accounts after their verification. In its official announcement, the exchange noted that the people holding Binance Link Program-based accounts are the target.

Binance Imposes Stringent KYC Requirements on the Users

Hence, they need to abide by the enhanced compliance standards of the crypto exchange. The platform mentioned that May 20th will be the last date for the necessary information for KYC requirements. Contrarily, the account holders who do not provide the required information until the respective period will get penalized. Subsequently, the exchange will completely restrict their accounts and they will not have access to them.

In addition to this, the company asserted that the holders of Exchange Link accounts should guarantee their Link-KYC module integration. Moreover, they must offer extra information regarding the sub-account holders through the Link-KYC module on demand. The respective information may take into account proof of address, source of income, and so on.

The provision of incomplete information will pave the way for a failure in onboarding a sub-account user, the firm added. According to the exchange, it will just communicate straightly with the holders of Exchange Link accounts. Additionally, it will not have any responsibility for communication with sub-account consumers.

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In terms of details, the fund sources include salary, assets, loans/mortgages, trading, donations, inheritance, etc. The wealth sources include crypto investments, financial investments, profits, and so on. The proof of address deals with utility bills, and account statements by the internet service provider. Landline telephone-related bills, home insurance statements, bank statements, signed and/or stamped bank reference letters, etc are also on the list.

Non-Complying Users Will Face Service Restrictions

Furthermore, the crypto exchange may prompt the sub-account-holding users to fill out a questionnaire regarding Politically Exposed Persons. The users can download this to fill it through the Link-KYC integration. In case of not fulfilling the requirements, the company will restrict the relevant users’ services. These services include deposits, withdrawals, spot trading, futures trading, and margin trading.