Binance, the world’s leading cryptocurrency exchange by trading volume, has announced the launch of its own know-your-customer (KYC) verification process. The move comes as the company looks to comply with new regulations from the Financial Action Task Force (FATF), an international body that sets standards for anti-money laundering (AML) and countering the financing of terrorism (CFT).
Under the new system, Binance users will have to submit a range of personal information, including their full name, date of birth, country of residence, and a government-issued ID. The exchange will also require users to take a selfie with their ID in hand.
The KYC process is not mandatory for all users, but those who do not complete it will be restricted in how they can use the platform. For example, unverified users will only be able to withdraw up to 2 BTC per day.
Binance has been criticized in the past for its lax approach to KYC and AML compliance. In 2018, the exchange was accused of being complicit in a $850 million money laundering scheme involving crypto startup Bitfinex and stablecoin issuer Tether.
Binance denied any wrongdoing.
The launch of Binance’s KYC verification process is a positive step towards greater compliance with global regulations. It will also likely make the platform more attractive to institutional investors and users who value security and transparency.