Binance Makes ID Verification Mandatory For All Users
Last Updated on 20 August 2021 by CryptoTips.eu
Binance’s several regulatory challenges have significantly affected its operation in several countries. To ensure that these challenges are overcome, the exchange has taken some steps such as user education and enlightenment as well as hiring compliance experts in its offices worldwide.
In another attempt to secure its users, the exchange announced it will require intermediate verification as the minimum requirement for all users. Before, users could use the lowest level of verification (phone numbers and email address) and could access limited services on the exchange. This means that going forward, users will require the intermediate verification as the minimum requirement to access any services on the exchange.
Binance focusing on compliance
Binance, like other exchanges, has problems with local rules and governments. According to the management, this new update is in support of Binance’s Know Your Customer (KYC) and Anti-Money Laundering (AML) efforts. Binance CEO Changpeng Zhao said in a statement he is putting all his efforts into compliance.
User protection is an integral part of our DNA and core values. Our vision is to create a sustainable ecosystem that is safe for all participants. In the last four years we have laid the groundwork by investing heavily in security and user protection, supporting law enforcement from around the world with high-profile investigations and helping cybercrime victims recover millions of dollars worth of stolen funds.
Exchange attacks on the increase
The attacks on exchanges has become a serious problem, both to the management and the users of such exchanges. These have also formed the basis for criticism of the industry by governments in several countries. Recently, Liquid exchange was hacked with users losing over $80 million in funds.
Binance’s efforts are geared towards redeeming its image and winning regulators over. This will help to sanitize the industry as a whole of other exchanges will adopt similar strategies in order to ensure user protection and comply with local governments. Other exchanges working on ensuring compliance are Huobi, ByBit and FTX.
