May 22, 2024
Binance Limits Unverified Sub-Accounts in Exchange Link Initiative
Latest Cryptocurrency News

Binance Limits Unverified Sub-Accounts in Exchange Link Initiative

Binance, a leading cryptocurrency exchange, has introduced mandatory Know Your Customer (KYC) requirements for its Exchange Link account holders through the Binance Link Program. As of April 5, only verified and compliant users will retain access to their sub-accounts within the program. This requirement extends to subaccounts designated solely for deposits and not utilized for trading purposes.

The exchange began imposing restrictions on non-compliant sub-accounts from March 20, issuing an ultimatum to unverified holders. By May 20, sub-accounts lacking the necessary KYC information will face full restrictions on accessing services under the Binance Link Program. Incomplete KYC submissions will result in deposit restrictions, although users will still have the ability to withdraw their funds.

Binance restrictions on unverified sub-accounts. Source: Binance

Trading Restrictions and Compliance Measures

For trading activities, restricted accounts will encounter limitations. In spot trading, they will be unable to place new orders, with existing orders canceled. In futures and margin trading, restricted accounts can’t initiate new orders but retain the option to reduce existing positions.

Additionally, Binance mandates Exchange Link account holders to furnish additional information on behalf of their sub-account holders. This includes details on the source of funds, source of wealth, and proof of address. Furthermore, Binance has implemented measures to identify sub-account users with political exposure, necessitating the provision of position and employer details.

Users related to Politically Exposed Persons (PEP) are required to disclose their relationship with the PEP. Binance reserves the right to freeze funds in sub-accounts and limit access for legal and compliance purposes. The exchange wrote:

“In such cases, Binance may sometimes not be able to provide the Exchange Link account holder or their sub-account users with a detailed explanation for legal and compliance reasons.”

Potential Account Downgrades and NFT Changes

Binance warns that unresponsive or uncooperative Exchange Link account holders may face restricted access or account downgrades, potentially leading to the deletion of sub-accounts. Meanwhile, Binance’s nonfungible token (NFT) arm has announced the cessation of support for Bitcoin Ordinals trades and deposits effective April 18. This move is part of the exchange’s effort to streamline its offerings on the Binance NFT marketplace. Additionally, Binance will discontinue Bitcoin NFT-related airdrops, benefits, and utilities after April 10.

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