Binance, the world’s largest crypto exchange by trading volume, is introducing a drastic change: From now on, all users must fully verify themselves in order to use the platform.

“Better protection for users”

As crypto-Exchange Binance has just announced, all customers must now perform a so-called KYC verification in order to buy and trade cryptocurrencies on the exchange. KYC is an abbreviation for” Know Your Customer ” and refers to a legitimation check of new customers, which is required in particular for credit institutions and insurance companies, in order to prevent money laundering.

The company about the announcement on Twitter:

“Binance is constantly reviewing its products and services to improve user protection, provide a secure crypto environment, and adapt to evolving global compliance standards. In an important step forward, we are updating our global KYC requirements for all users.“

ID and selfie required

As of now, the following changes apply: All new users must complete “intermediate”verification in order to gain access to Binance products and services, including cryptocurrency deposits, trading and withdrawals. Existing users who have not yet completed this verification can now only withdraw assets or leave positions. The full functionality should then be available again as soon as the KYC process has been carried out.

Until now, the minimum required for verification was to enter the name and date of birth. Now you also have to upload an identity document including a selfie in order to use Binance. The exchange complements:

“We announce these measures to strengthen Know Your Customer (KYC) and anti-money laundering efforts, which will further enhance user protection and combat financial crime.“

Regulation as a growth driver

Binance’s move may be in response to the regulatory pressure the company has been facing for months. Previously, several countries had warned that Binance would offer its services without a valid license. The Thai Financial Supervisory Authority even filed a criminal complaint against Binance. Regulators in the United States, Japan, the United Kingdom, Poland and the Cayman Islands also raised concerns.

However, Binance CEO Changpeng ” CZ ” Zhao has been stressing for weeks that they want to do everything possible to meet the requirements and become a regulated financial institution. This is now apparently being implemented in concrete terms. On Twitter, he comments on the process as follows:

“Actions speak louder than words.“

Whether” more regulation ” will have a positive or negative impact on the crypto industry, the spirits are divided. Many fear an attack on the crypto ethos: anonymity, independence, freedom. However, many industry experts also consider regulation to be a necessary prerequisite for the sustainable growth of the industry, such as MicroStrategy CEO Michael Saylor. The founder of hedge fund manager “Three Arrows Capital”, Su Zhu, also sees something positive in Binance’s latest move. He writes to his more than 235,000 followers:

“Binance kyc is bullish, it means they are considered much more benevolent by regulators worldwide.“

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Last updated on August 20, 2021

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