Binance Tightens KYC Requirements for Business Clients

As of March 20, cryptocurrency exchange Binance restricted access to Exchange Link subaccounts under the Binance Link program for those who have not provided additional verification information.

By May 20, account holders must complete the KYC process, or their accounts will be permanently frozen without the possibility of unblocking.

Binance Link, launched in 2020, is a program for corporate clients that allows them to use the platform’s technology, create subaccounts, and earn commission revenue.

Users responsible for managing accounts must fully integrate with Link-KYC.

“Exchange Link owners must be prepared to provide data on users of their additional accounts. Incomplete client information will result in the inability to register an additional account,” the announcement stated.

Binance reserves the right to request any additional data necessary for verification, including the source of funds and residential address.

The platform may also require subaccount owners to complete a questionnaire for potential politically exposed persons, which includes questions about relatives and positions held.

“In certain cases, funds in the subaccount may be frozen, and access restricted for legal reasons related to compliance requirements. In such cases, Binance may sometimes be unable to provide the owner with a detailed explanation,” the company warned.

Earlier, the exchange joined the Global Travel Rule Alliance. The platform provides infrastructure to comply with FATF recommendations.

Back in November 2023, the exchange’s founder, Changpeng Zhao, admitted to failing to maintain an effective anti-money laundering program as the company’s head. As part of an agreement with the US Department of Justice, he agreed to pay a $50 million fine and step down as CEO.

Hearings in Zhao’s case are scheduled for April 30. He faces up to 18 months in prison, although earlier discussions suggested a 10-year term.