Binance threatens full restrictions on unverified sub-account holders

Binance, a prominent cryptocurrency exchange, has recently issued a warning to its users with sub-accounts on its Exchange Link program. In an official announcement, Binance stated that it is now mandatory for sub-account holders to complete the Know Your Customer (KYC) process in a timely manner. Failure to comply with this directive will result in full restrictions being imposed on their accounts. The exchange has already begun taking action against unverified users since March 20 and has set a deadline of May 20 for all users to comply. While account holders can still withdraw funds, they will be unable to make deposits or engage in spot trading. Additionally, open orders will be canceled, and futures and margin trading will be restricted. Non-compliant users face the risk of having their accounts downgraded and their sub-accounts deleted.

Binance threatens full restrictions on unverified sub-account holders

Cryptocurrency exchange Binance has recently taken steps to enforce stricter regulations on its users. Specifically, the exchange has announced that users with accounts on its Exchange Link program who have not completed the mandatory Know Your Customer (KYC) process will face restrictions on their accounts. Binance has mandated that sub-account users promptly comply with the KYC requirements in order to maintain access to their accounts.

Binance set to restrict sub-accounts without KYC

Since March 20, Binance has been taking action against unverified users of its Exchange Link program. To further emphasize the importance of compliance, the exchange has issued an ultimatum to these users. By May 20, any user who has not completed the necessary KYC procedures will no longer be able to access the Binance Link Program Services. This means that affected users will be restricted from using certain features of their accounts.

Ultimatum for non-compliant users

Binance has made it clear that users who fail to comply with the KYC requirements by the specified deadline will face consequences. While they will still be able to withdraw funds from their accounts, they will no longer be able to make deposits. In the event that a user mistakenly deposits funds after the deadline, it may take up to 45 days for the funds to be refunded. Furthermore, an administrative fee of $200 will be charged for appeals, regardless of the amount of the deposit.

Restricted access to Binance Link Program Services

In addition to the restrictions on deposits and withdrawals, Binance has outlined the specific limitations that will be imposed on non-compliant users. These restrictions vary depending on the type of trading involved. For spot trading, users will be unable to make any trades and all open orders will be automatically canceled. For futures and margin trading, restricted users will not be able to open new positions but will be allowed to reduce their existing positions.

Misplaced deposits will take up to 45 days to be refunded

Binance has anticipated the possibility of users mistakenly depositing funds into their accounts after the deadline. In such cases, it may take up to 45 days for the funds to be refunded. Users should exercise caution and ensure they adhere to the KYC requirements to avoid complications with their transactions. It is important to note that the administrative fee of $200 will still be charged for appeals, even in cases of misplaced deposits.

Administrative fee for appeals

Binance has implemented an administrative fee of $200 for appeals related to the restrictions on unverified sub-accounts. Regardless of the amount of the deposit, users who wish to appeal the restrictions will be subject to this fee. It is crucial for users to comply with the KYC requirements to avoid unnecessary expenses and delays in accessing their accounts.

Additional information required from Exchange Link account holders

For users with accounts on the Exchange Link program, Binance has specified additional information that needs to be provided. This includes proof of address, source of funds, and other relevant details. Furthermore, users will be asked to declare if they are involved in politics. In such cases, they must provide their political position and details of their employer.

Proof of address and source of funds

To comply with KYC requirements, Binance has requested proof of address from users. This may involve providing documents such as utility bills or bank statements that clearly display the user’s residential address. Additionally, users must provide information on the source of their funds. This is to ensure transparency and prevent any illicit activities on the platform.

Declaration of involvement in politics

As part of the KYC process, Binance requires users to declare if they are involved in politics. This is an important step to ensure compliance with relevant regulations and laws. Users must accurately provide their political position and details of their employing organization. By gathering this information, Binance aims to enhance the security and legitimacy of its platform.

Details of political position and employer

Users who are involved in politics must provide specific details about their political position and the organization they work for. This information is essential for Binance to perform thorough due diligence and satisfy compliance requirements. By gathering comprehensive data, the exchange aims to prevent any potential risks or misuse of its platform.

Relationships with people holding political positions

In addition to individual political involvement, Binance also requires users to disclose any relationships they may have with individuals holding political positions. This includes family members, relatives, or close associates who hold such positions. By identifying these relationships, Binance can further assess the potential risks associated with users’ accounts and ensure compliance with relevant regulations.

Restrictions due to legal and compliance rules

Binance has emphasized that the restrictions imposed on unverified sub-accounts are in compliance with legal and regulatory requirements. The exchange is committed to upholding the highest standards of security, transparency, and compliance. By enforcing these measures, Binance aims to create a safe and trustworthy trading environment for its users.

Lack of detailed explanation in case of restricted access or frozen funds

In the event that a sub-account user experiences restricted access or finds their funds frozen, Binance may not be able to provide a detailed explanation. This is due to legal restrictions and compliance obligations. While the exchange strives for transparency, there are situations where it may be constrained by legal considerations. Users should be aware of this possibility and take proactive steps to ensure compliance to avoid potential issues with their accounts.

In summary, Binance has announced strict measures against unverified sub-account holders on its Exchange Link program. Users who fail to complete the mandatory KYC requirements by the specified deadline will face restrictions on their accounts. It is crucial for affected users to comply promptly to maintain full access to their accounts and avoid complications. Binance remains committed to ensuring compliance and creating a secure trading environment for its users.