- Binance enforces strict KYC requirements for sub-accounts to boost compliance.
- Unverified sub-accounts risk losing Binance Link Program access.
- Communication solely with Exchange Link holders underscores user responsibility.
In a recent update, Binance has introduced stringent identity verification requirements for all its sub-accounts under the Binance Link Program, aiming to enhance compliance standards. According to the update, the exchange has been imposing restrictions on sub-accounts that lack the necessary Know Your Customer (KYC) documentation since March 20, 2024.
Moreover, the firm explained that on May 20, 2024, unverified sub-account holders will face full access restrictions and lose the ability to use Binance Link Program services. Concurrently, the updated policy mandates that Exchange Link account holders integrate with the Link-KYC module to ensure all sub-accounts comply with enhanced standards.
This includes providing detailed information on behalf of their sub-account holders, such as Source of Funds, Source of Wealth, and Proof of Address. Emphasizing the importance of complete and accurate user information for successful onboarding, Binance asserted that it will directly communicate with Exchange Link account holders only and will not be responsible for communicating with sub-account users.
Additionally, Binance may request a Politically Exposed Persons (PEP) Declaration to further scrutinize sub-account holders for compliance purposes. Sub-accounts with incomplete KYC information will face various restrictions, including limitations on deposits, spot trading, futures trading, and margin trading.
In some cases, funds may be frozen and access to sub-accounts restricted for legal and compliance reasons. Binance has also set an administrative fee for the appeal process regarding misplaced deposits, emphasizing the need for Exchange Link account holders to keep their sub-account users informed.
The announcement wraps up by mentioning that access restrictions could apply if Binance Exchange Link account holders are unreachable, unresponsive, or uncooperative. As a result, Exchange Link account holders might see their accounts downgraded to corporate status, with unused sub-accounts being removed.
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