Binance will restrict access to Binance Link services to users without KYC

What’s new? Crypto exchange Binance has announced that Exchange Link account holders who have created sub-accounts under the Binance Link program must undergo a verification (KYC) process by May 20. Users who fail to complete KYC will lose access to Binance Link accounts and services. The requirement applies to non-trading sub-accounts created solely for asset deposit purposes, among others.

Announcement on the Binance website

What else is known? Binance Link is a Binance affiliate program that allows you to trade cryptocurrencies through the platform’s API. The exchange began applying restrictions for unidentified users of the program back on March 20.

The data that Exchange Link account holders must provide include:

• source of funds;
• source of wealth;
• proof of residence;
• politically exposed persons (PEP) declaration and their employees or relatives.

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Sub-account holders who fail to pass KYC will not be able to fund their accounts and access trading. However, withdrawals will be available to such users.

In some cases, access to the sub-account may be restricted and funds frozen for legal and regulatory reasons. Restricted accounts cannot receive deposits. The Binance team warned that it can take up to 45 days to refund erroneously placed deposits. In addition, an administrative fee of $200 or equivalent is charged for each appeal, regardless of the size of the deposit.

It is noted that access restrictions may be imposed if Exchange Link account holders are not contacted. In some cases, Exchange Link accounts may be moved to corporate account status and unused sub-accounts removed. Such account holders will lose access to the Binance Link program and will not be allowed to reopen Exchange Link accounts.

Earlier, Binance joined the crypto exchanges’ AML compliance community. As part of the Global Travel Rule Alliance, the platforms use a single solution to share transaction data.

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In early April, the Nigerian authorities engaged Interpol to facilitate the extradition of Binance senior executive Nadeem Anjarwalla, who fled the country on a fake passport. At the same time, Binance asked Nigeria to release his colleague Tigran Gambaryan. Both were detained in February after arriving in the country for talks over allegations of money laundering on the exchange.