Binance announced the new regulations in a blog post on Friday. The company said,
"Effective immediately, all new users are required to complete Intermediate Verification to access Binance products and service offerings, including cryptocurrency deposits, trades, and withdrawals."
To enhance user protections and give a safe crypto ecosystem for everyone, Binance also stressed that "Existing users" who have yet to finish "Intermediate Verification" will have their account permissions temporarily changed to “Withdraw Only.” In addition to this, the services are limited to withdrawal, order cancellation, position close, and redemption.
Further, the company stated that this will be carried out in stages to reduce user-experience disruption, from now through October 19 2021 at 00:00 AM (UTC). Binance also added that it will directly inform existing users directly with more details.
Once users complete the verification process, they could resume full access to Binance products and services.
Binance firmly urges users to complete their verification immediately to avoid delays in the verification process and limitations on their access.
Binance announced these measures to help support its efforts in Know Your Customer (KYC) and Anti-Money Laundering (AML). This will enhance user protection and combat financial crime.
Binance exchange has come under a series of regulatory investigations by global regulators in multiple authorities. This includes the U.S., the U.K., Canada, Hong Kong, Cayman Islands, and several European Union countries.
On July 28, Changpeng Zhao, the CEO and founder of Binance announced that he wants the largest crypto exchange to work with local regulators as it establishes regional headquarters.