Binance exchange has announced it is cutting down withdrawal limits for existing users to 0.06 BTC per provided they do not have full KYC verification.
Binance, the world’s largest cryptocurrency exchange by trading volume, has introduced withdrawal limitations and a new tax reporting mechanism as part of its ongoing attempts to maintain engagement with global regulators.
The corporation announced a big change to its Know Your Customer regulations on Tuesday, drastically lowering the maximum withdrawal amounts for consumers who have not completed comprehensive identification verification.
Users who have completed only basic account verifications will be unable to withdraw more than 0.06 Bitcoin (BTC) per day, valued at around $2,400 at the time of writing, starting immediately for new Binance accounts.
Binance CEO Changpeng Zhao highlighted on Twitter that the highest daily withdrawal amount was previously restricted at 2 BTC, or roughly $80,000.
Binance will continue to impose additional withdrawal limitations to existing customers in phases beginning August 4th, according to the release.
By Aug. 23, the exchange hopes to have fully implemented the new withdrawal limitations. Users that have completed full identification verification will still be able to withdraw up to 100 BTC every day, which amounts to over $4 million at current BTC pricing. The notification states that “withdrawal limitations reset every day at 00:00 AM.”
On Wednesday, Binance launched a new tax reporting tool. Binance customers may trace their crypto transactions, transmit their transaction history to third-party vendors, and get fast overviews of their local tax responsibilities via the reporting system, which is an Application Programming Interface.
The new project is part of the exchange’s larger strategy to improve user security and risk management.
Users can now choose a third-party tax tool to transfer their transaction history, according to Binance’s tax reporting instructions page.
“Binance does not recommend any specific third-party tax software. When selecting third-party tax tools, “please exercise your own discretion and/or consult your personal tax counsel based on your specific tax circumstances and requirements,” the exchange cautioned.
The announcement comes as Binance implements additional trading limits in an apparent attempt to respond to the exchange’s increasing worldwide regulatory onslaught.
The euro, the Australian dollar, and the British pound sterling were among three fiat currencies delisted from the exchange this week. The maximum leverage position on Binance’s futures trading platform has been reduced from 125x to 20x.
Zhao also intimated on Tuesday that if someone “with a good regulatory background” becomes available, he could be willing to step aside as CEO. He stated, “There are no urgent plans to replace me as CEO.”
