Binance Enforces Mandatory KYC for Exchange Link Users, Restricts Sub-Account Access

Binance implements mandatory KYC requirements for Exchange Link account holders, restricting access for noncompliant sub-accounts by May 20. Restricted accounts face limitations on deposits, trading, and withdrawals, while Binance emphasizes the importance of providing complete KYC information, including wealth sources and political affiliations.

Binance Imposes Mandatory KYC Requirements for Exchange Link Sub-Accounts, Restricting Access for Unverified Users

Binance, the prominent cryptocurrency exchange, has announced the implementation of mandatory Know Your Customer (KYC) requirements for account holders under its Exchange Link Program. Effective April 5th, only verified and compliant users will be granted access to their sub-accounts. This mandate extends to subaccounts utilized solely for deposit purposes and not involved in trading activities.

Since March 20th, Binance has been progressively imposing restrictions on noncompliant sub-accounts, issuing an ultimatum to unverified sub-account holders. The exchange has emphasized that by May 20th, sub-accounts that have failed to submit the requisite KYC information will face "full restriction" from accessing the Binance Link Program services.

Restrictions on Unverified Sub-Accounts:

• Accounts with incomplete KYC documentation will have their deposits restricted. However, withdrawals will be permitted.
• In spot trading, restricted accounts will be barred from placing new orders and will have all existing orders canceled.
• In futures and margin trading, restricted accounts may reduce their current positions but are prohibited from creating new orders.

Additional Requirements for Sub-Account Holders:

Binance has specified that Exchange Link account holders are responsible for providing additional information on behalf of their sub-account holders. This includes details on the source of funds, the sub-account holder's financial status, and proof of address.

Additionally, Binance has implemented measures to ascertain whether a sub-account user is involved in politics. For politically exposed individuals, Binance requires disclosure of their position and employer details. Relatives of politically exposed persons (PEPs) must also provide information regarding their relationship with the PEP.

Binance reserves the right to freeze funds in a sub-account and restrict access for legal and compliance reasons. The exchange notes, "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."

Furthermore, Binance may restrict access to Exchange Link account holders who are unresponsive or uncooperative. This could result in account downgrades and the complete deletion of their sub-accounts.

Discontinuation of Bitcoin Ordinals Support:

In a separate announcement, Binance's nonfungible token (NFT) division has stated that it will cease supporting Bitcoin Ordinals trades and deposits from April 18th. This decision aligns with Binance's strategy to optimize its offerings within the Binance NFT marketplace. Bitcoin NFT-related airdrops, benefits, and utilities will also be discontinued after April 10th.