2024-04-06
Binance, the cryptocurrency exchange, recently made an important announcement regarding its Exchange Link program.
Under this program, all Binance Link account holders will now be required to comply with Know Your Customer (KYC) requirements.
Effective April 5, only users who have been verified and are fully compliant will have access to their sub-accounts.
This rule applies even to sub-accounts created solely for deposit purposes and not used for trading.
Binance has been imposing restrictions on noncompliant sub-accounts since March 20 and has given an ultimatum to unverified sub-account holders.
By May 20, any sub-accounts that have not submitted the necessary KYC information will face full restrictions and will no longer be able to access the services provided by the Binance Link Program.
Accounts with incomplete KYC information will have their deposit capabilities restricted. However, they will still be able to withdraw their funds.
Regarding trading, restricted accounts will not be able to place new orders in spot trading, and any existing orders will be canceled.
In futures and margin trading, restricted accounts will not be able to place new orders, but they will have the option to reduce their existing positions.
Binance has requested that Exchange Link account holders take responsibility for providing any additional information required for their sub-accounts. This includes details about the source of funds, wealth, and proof of address.
Additionally, Binance has implemented measures to identify any sub-account users who are involved in politics. If a user is considered politically exposed, Binance will require them to disclose their position and employer details.
Individuals associated with politically exposed persons (PEP) must also provide information about their relationship with the PEP.
Furthermore, Binance has stated that it may freeze funds in a sub-account and restrict access for legal and compliance reasons.
In such cases, the exchange may not be able to provide a detailed explanation to the Exchange Link account holder or their sub-account users, due to legal and compliance constraints.
Binance has also emphasized that it reserves the right to restrict access for unresponsive or uncooperative Exchange Link account holders. This may result in account downgrades or the complete deletion of sub-accounts.
