Regulatory pressure on Binance, the world’s largest cryptocurrency exchange, continues to show its effects. Following the warnings it received from regulators, Binance had decreased the withdrawals to be made without KYC, that is, identity verification, and is now increasing it.
KYC regulations are very important to many cryptocurrency exchanges, and for this reason, exchanges may even be closed. Recently, the US-based cryptocurrency exchange giant Kraken has also started to implement stricter KYC conditions, and Binance has also chosen this path. Binance is claimed to tighten and complicate KYC requirements, according to recently reported news.
Users will now go through a high-level verification to make deposits, exchanges or withdrawals. With this step, it will be easier for institutions to find the user in case of a possible doubt. Binance may require more than just verifications, such as regular credentials and address information, or do additional research from now on.
Binance recently appointed Greg Monahan, one of the biggest names in the world against money laundering, to lead its own unit and showed the important steps it would take in this regard.
Pressure on Binance continues to mount, with the CFTC reportedly launching an investigation against Binance within the US Although the source is not given in the Bloomberg news, the situation looks a bit dire.
Binance, on the other hand, has taken such measures to avoid problems in these situations.