Binance tightens KYC standards for corporate clients

Cryptocurrency exchange Binance is tightening its KYC requirements for business clients.

According to an announcement from today, beginning on March 20, the crypto platform restricted access to subaccounts that still need to pass KYC verification. Accounts will be frozen unless relevant documentation is transferred to the site by May 20. Additionally, any non-compliant clients will also lose access to Binance Link.

Binance Link is a program that allows corporate clients to develop their businesses using the platform’s technologies and profit from trading commissions.

Exchange Link account holders responsible for creating and managing sub-accounts must ensure the latter is fully integrated with the Link-KYC module. Users will also be required to provide the crypto exchange with additional information about users upon request, including information about the source of funds and proof of address.

To comply with anti-money laundering (AML) regulations, Binance may require sub-account holders to complete a Potential Politically Exposed Person (PEP) questionnaire. It contains questions about PEP status, occupation and job title, and employer information.

Following a settlement with U.S. authorities at the end of 2023, Binance is taking increasing steps toward full compliance with regulatory requirements. Last week, the platform joined the Global Travel Rule (GTR) organization and will monitor and transmit all transactions exceeding $1,000.

For the first time since its founding in 2017, the trading platform has revealed the composition of its board of directors. It included seven people, three top managers working at Binance since the opening, and three external members.