Binance has implemented KYC requirements for all sub-accounts created under its LINK program, with non-compliant sub-accounts facing restrictions and eventual account suspension.
Binance has informed its users that all sub-accounts created under the Binance Link program must adhere to enhanced compliance standards. This includes non-trading sub-accounts created solely for asset deposit purposes.
Starting March 20, 2024, Binance is implementing restrictions on sub-accounts that have not completed the required Know Your Customer (KYC) documents. As of May 20, 2024, sub-account holders who have not provided the required KYC information will have their accounts completely banned, and will lose access to Binance Link Program services.
Exchange Link account holders, who are responsible for creating and managing sub-accounts, must ensure that their sub-accounts are fully integrated with the Link-KYC module. Additionally, they must provide any additional user information on behalf of their sub-account holders upon request. This may include details about the source of funds, source of funds and proof of address.
Binance will only communicate directly with exchange linked account holders and will not be responsible for communicating with sub-account users. Therefore, it is important for account holders to provide any necessary information to their sub-account users.
To comply with anti-money laundering (AML) regulations, Binance may require sub-account holders to complete a questionnaire for potentially politically exposed persons (PEPs). The questionnaire includes questions about PEP status, occupation/title, employer details and relationship to the PEP.
Sub-accounts with incomplete KYC information will face various restrictions on their trading activities. Spot trading will be restricted, meaning users cannot place new orders and existing spot orders will be cancelled. Futures trading will also be restricted, allowing users to short existing positions but not place new orders. Similarly, margin trading will be limited to shorting existing positions only.
Restricted sub-accounts will be unable to receive deposits, and any erroneous deposits may take up to 45 days to be refunded. An administrative fee of $200 or equivalent will be charged per appeal, regardless of deposit size. Binance advises all exchange linked account holders to inform their sub-account users of these changes.
Binance emphasizes the importance of complying with these identity verification requirements to ensure a secure, transparent and user-friendly trading environment. Users are reminded to consider their investment decisions carefully and consult a financial advisor before making any investments.
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