Binance is the largest crypto exchange in the world. Currently, it is serving consumers in more than 200 countries around the world. Due to the wide range of fiat currency options and many cryptocurrencies listed on the exchange, investors from all parts of the world find it easy to conduct trade on this platform.
Therefore, the Hong Kong-based crypto enterprise has become the world leader after being in business for four years. Recently, Binance has started to face some regulatory backlash from several countries around the world. According to Binance officials, every country has a different set of rules, and it takes some time to fix the issues and become compliant globally. In the same vein, Binance has decided to make it compulsory for the new consumers to be compliant with KYC compliant.
The investors who want to use Binance and create a new account need to get through 3 level user verifications. In the first stage, the user must keep their national identification documents at hand. They need to enter their legal name, registered address, and active email address. The next phase asks the consumers to enter their updated national Identification number.
Those who do not have their national ID at hand can use passport or driving license credentials. In the final level, the new registering users need to upload their latest photograph. This is a high-level KYC or Know-Your-Customer verification method that increases the security and safety of investors. The old users who want to keep using their accounts without KYC verification have a very limited daily transaction limit.
Binance has Increased its Compliance Staff by 500% this Year
Binance CEO Changpeng Zhao recently told the media that his enterprise is using a proactive approach towards compliance with legal obligations. There are many jurisdictions where Binance has been blocked by the federal authorities. However, the users in those regions are still able to access the website by the use of VPN services.
The Department of Justice has also issued a warning and hinted at imposing higher taxes on the service. Binance is making important changes to become regulatory compliant in as many countries as possible. Recently, Binance has hired a former IRS employee who worked as a criminal investigation specialist. As per Zhao, the compliance staff has increased by 500% this year.