Back in 2017, when Binance was launched, it was a honeymoon period. There was no KYC requirement, and one could freely trade on Binance from any part of the world. As Crypto started to become mainstream, and due to an arm-twist by regulatory bodies around the globe, Binance implemented the KYC system.
The KYC is a standard practice among any investment platform, but for Binance and crypto, it was devastating. When Binance implemented KYC, many users around the globe quit the platform and moved to no-KYC platforms. Just to let you know, with the regulators becoming serious about money laundering and illicit uses of cryptocurrency, it would not be far that No-KYC exchanges would become illegal one day, and users would flock to the DeFi platforms.
However, for the scope of this guide, I will be covering all the aspects of Binance KYC norms and questions around them. If this is your first time reading about Binance, you should check out my earlier review of Binance.
What is Binance KYC and why they have implemented it?
KYC (Know your customer) is the foundation of AML/CFT compliance regulations around the world, and which requires financial institutes to identify their customers and understand their nature of business.
This is done in order to prevent misuse of financial instruments and stop terrorism financing. If not, any individual or group can misuse such financial platforms to fund illicit activities.
Back in 2017-2018, the crypto industry was new and a lot of exchanges including Binance had basic KYC where users could join using their email address or phone number. However, as the crypto industry became big, Binance started implementing strict KYC policies. Instead of grandfathering the old users, they gave them an ample amount of time to withdraw funds or complete the KYC. For users who have not completed the KYC, Binance restricted or limited their withdrawal.
What are the different Binance KYC verification levels available?
Binance KYC Levels
For individuals, there are two levels of KYC or Identity Verification with Binance:
Verified and Verified Plus
The primary difference between these two verification levels is the amount of fiat deposit and withdrawal limits and a few other additional services offered to “Verified Plus” users such as Binance Card etc. Most of the services are available just with a Verified level of identification.
Now, let’s understand them one by one.
Verified Users
Under this level of verification, a user is required to provide his or her identity proof. This would include the following:
a) Basic personal information,
b) Government-issued ID, and
c) Facial recognition
You can refer to the Binance Identity verification guide for more on this.
Although the Fiat deposit and withdrawal limit for most of the Verified accounts is $50,000 daily, it may vary in different jurisdictions. To check your fiat deposit and withdrawal limit, you should check your “Identification” page on Binance.
Verified Plus Users
Verified plus is an advanced version of verification where a user needs to provide an additional document as address proof. In comparison with a Verified User, a Verified Plus User is provided with some additional services such as an increased limit of fiat deposit and withdrawal, a Binance card, etc.
The documents accepted by Binance as address proof are as follows:
a) Bank statement
b) Utility Bills (water, electricity, internet, etc.)
Further, the Fiat deposit and withdrawal limit for most of the Verified Plus accounts is $200,000 daily. However, it may vary in different jurisdictions. You can check your limit on the “Identification” page.
Points to note for address proof:
a) The name on the document must be the same as your submitted ID
b) The address on the document must be the same as the residential address you entered
c) The document must have been issued within the last three months
d) The name, address, document issue date, and issuer must be shown clearly on the document
e) The document must be high quality (at least 300 DPI)
Refer to this to know more about address verification on Binance.
Current status of Binance KYC :
Anyways, fast forward to 2022. A lot has changed in the Binance KYC space, and let’s understand everything you need to know as a new user or an existing user about Binance KYC.
First of all, if you are wondering what kind of data is collected by Binance and how they process your personal information, you should read this.
Is KYC mandatory on Binance?
Binance has implemented mandatory know-your-customer (KYC). Unlike old times, now you can’t have a working Binance account without KYC.
What KYC documents do Binance accepts?
Some of the identifying documents that are accepted by Binance are:
Driver’s License / Government-issued photo ID
Passport
Social security number
PAN card
Voter ID Card
Utility Bill (Address proof)
Lease Agreement (Address proof)
Account statement from a different bank (Address proof)
How to complete identity verification on Binance
This video would guide you on how to complete identity verification on Binance:
How to change your KYC details?
If you have moved country or your resident country has changed, then you can go to profile settings, and do address verification.
What about Binance corporate account KYC?
Binance allows users to create a corporate account. Depending upon the country you are in, the documents required for corporate account KYC would be different.
Can you change the KYC of your Binance account?
Yes, you can change the KYC of your Binance account. If you already have verified account, you can ask Binance to reset your verification level, and then you can submit new documents.
You need to upload a copy of the document showing your full name or business which clearly indicates: residential address, date of issuance, and name of the issuer, it needs to be dated within three months before the date of submission. Valid documents include, but are not limited to: • Municipality bill for utility services such as electricity, water, sewerage • Municipal rates & taxes statement • Internet service bill • Bank statement – need to include transaction history within 90 days from today • Mortgage statement • Body corporate statement • Building management statements • Landline telephone bill (mobile bills are not acceptable)
Should I create a new Binance account if I move to a new country?
Users can only have one verified account in Binance. So we advise you to complete the new address verification in your existing account and continue using your existing verified account. Or another solution is to close the old account, and create a new one. Though before you do this, speak to Binance support team and see if re-opening a new account is possible.
Note:
There are different KYC rules for different countries and regions
Note: This Binance KYC article is work in progress, and will be updated as we have more data and input. If you have any question about Binance personal account or Business account KYC process or making amendments, you could let us know via comment below.
Note: This article is for educational purposes only, and do check with Binance support for the updated rules.
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