![]() ![]() The move is part of an effort to "shift commercial focus to other product offerings". The exchange stopped trading tokenized shares earlier this month, under pressure from regulators in the U.S., Japan, Hong Kong, the U.K., Italy and the Cayman Islands. From startup to financial services providerīinance's CEO recently responded to the investigations, confirming that the exchange plans to step up its compliance efforts and change its mindset from a "start-up to a financial services provider". He stresses that he is not forced to do so, but would do it for the good of the company. Speaking to reporters, Zhao also revealed that he may step down if a successor can resolve these regulatory issues better than he can. In late April, Binance hired Brian Brooks, a former top regulator and acting head of the U.S. The company is also highlighting the move with personnel. ![]() We will actively engage with regulators everywhere as more crypto-specific frameworks are introduced." - Changpeng Zhao (CZ), Binance CEO This includes ongoing work in Asia Pacific, EMEA and Latin America. "Where a legal framework for crypto exchanges exists, we have initiated the process for licenses and permits. Just recently, it was announced that Binance will implement the Financial Action Task Force (FATF) Travel Rule. ![]() As a result, the exchange has recently been looking to strengthen its systems to fully comply with existing regulations. Previous reports have suggested that Binance is under investigation for non-compliance with global anti-money laundering (AML) regulations. The move comes at a time when Binance is under heavy fire from regulators around the world, for its lack of KYC and financial reporting rules. In addition, the rule will also make it more difficult for Binance users to trade cryptocurrencies without going through the exchange's KYC ( Know Your Customer) process. This is an attempt to limit possible cases of illegal activity. The lowering of the limit for basic verification indicates that Binance wants to make it more difficult for unknown users to abuse the previous daily limit. Once an account is fully verified and users have provided identification, up to 100 BTC (worth about $3.7 million) may be withdrawn within 24 hours. However, these are not checked against any official government-issued identity or document. Account verification requirementsįor basic account verification, Binance simply asks users to provide a name with date of birth, nationality and address, as well as a personal email address. With the new measures, the highest-volume crypto exchange appears to be addressing regulatory pressures. Introducing a limit on daily withdrawals is a common practice among most crypto exchanges to curb illegal activities such as money laundering. The change has already been implemented for new users, and will be phased in for existing users by August 23. Now, only around $2000 (0.06 BTC) may be withdrawn per day. Unverified accounts could previously withdraw up to 2 BTC. The largest crypto exchange by trading volume has sharply reduced its daily withdrawal limit. The proactive step against money laundering is intended to counter ongoing allegations by regulators. The largest cryptocurrency exchange, Binance, is restricting its withdrawal limit for unverified users by 97% effective immediately, among other measures.
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