Binance has announced plans to restrict sub-accounts without the necessary KYC information under the Binance Link Program.
Verified and compliant users would be the only ones able to access their sub-accounts, according to Binance’s announcement on April 5. Subaccounts opened for deposits only and not used for trading are likewise subject to the regulation.
According to the exchange, since March 20, it has been imposing limits on noncompliant sub-accounts and issuing an ultimatum to holders of unverified sub-accounts.
According to the exchange, sub-accounts not provided the required KYC information will be “fully restricted” from using the Binance Link Program services by May 20.
Restrictions on deposits will apply to accounts with inadequate KYC information. They will be able to take their money out, nevertheless.
Trade-wise, the restricted accounts will lose the ability to place new orders in spot trading and will have all of their current orders cancelled.
The limited accounts can reduce their existing futures and margin trading positions but cannot place new orders.
According to Binance, owners of Exchange Link accounts should be the ones to submit any extra data on behalf of the owners of their subaccounts. This covers their wealth, source of income, and evidence of address.
Binance has implemented additional steps to ascertain a sub-account user’s political involvement. If they have political exposure, Binance requests the user’s position and employment information.
Individuals with a relationship with politically exposed persons (PEPs) must disclose specifics about the PEP.
The exchange also mentioned that they might freeze the money in a sub-account and limit access for legal and compliance purposes. The conversation wrote:
“In such cases, Binance may sometimes not be able to provide the Exchange Link account holder or their sub-account users with a detailed explanation for legal and compliance reasons.”
The exchange made it clear that users of Exchange Link accounts who are uncooperative or unresponsive may have restricted access. This can result in the downgrading of accounts and the complete deletion of their subaccounts.
On April 18, Binance’s nonfungible token (NFT) division will stop supporting deposits and transactions of Bitcoin Ordinals.
According to the exchange, this is a component of their attempts to simplify their products on the Binance NFT market. After April 10, Binance will stop providing Bitcoin NFT-related airdrops, perks, and services.
