Binance now requires strict identification checks for sub-accounts to ensure compliance. Sub-accounts that are not verified risk losing access to the Binance Link Program. Binance emphasizes that users are solely responsible for communicating with Exchange Link holders.
In a recent announcement, Binance has implemented strict identity verification rules for all its sub-accounts enrolled in the Binance Link Program to improve compliance. As of March 20, 2024, sub-accounts without the required Know Your Customer (KYC) documentation face limitations.
Binance Exchange Link: Mandatory Identity Verification (KYC) Requirementshttps://t.co/dtZzWa0xhQ
— Binance Announcement (@BNAnnouncement) April 5, 2024
Binance Tightens Restrictions on Unverified Sub-Accounts
Binance has further tightened its regulations concerning unverified sub-accounts. Starting May 20, 2024, unverified sub-account holders will experience complete access restrictions and lose access to services provided by the Binance Link Program.
Additionally, the updated policy requires Exchange Link account holders to integrate with the Link-KYC module by providing detailed information on behalf of their sub-account holders. This includes details such as Source of Funds, Source of Wealth, and Proof of Address, aiming to ensure compliance with enhanced standards.
Emphasizing the importance of accurate user information for successful onboarding, Binance clarified that it will exclusively communicate with Exchange Link account holders and will not be responsible for communicating with sub-account users.
Binance Enhances Sub-Account Compliance
In a bid to enhance compliance, Binance may require sub-account holders to submit a Politically Exposed Persons (PEP) Declaration. Sub-accounts with incomplete KYC information will face various restrictions, including limitations on deposits, spot trading, futures trading, and margin trading.
Furthermore, funds may be frozen, and access to sub-accounts restricted in some cases due to legal and compliance reasons. Binance has also introduced an administrative fee for the appeal process concerning misplaced deposits, underscoring the importance of Exchange Link account holders keeping their sub-account users informed.
The announcement concludes by highlighting that access restrictions could be imposed if Binance Exchange Link account holders are unreachable, unresponsive, or uncooperative. Consequently, Exchange Link account holders may have their accounts downgraded to corporate status, with any unused sub-accounts being removed.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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