Key Points
- Binance revealed a new announcement highlighting the need for more robust mandatory identity verification requirements.
- Sub-accounts created by Exchange Link account holders under the Binance Link Program have to adhere to the enhanced compliance standards.
In an official announcement Binance addressed the necessity to strengthen mandatory identity verification requirements for enhanced compliance standards for Binance Link Program.
Binance Link Program enables enterprise clients to build their business with Binance technology while earning commission from trading fees by leveraging the exchange’s liquidity and market depth.
The program can basically supercharge businesses with tailored crypto solutions.
Binance Exchange Link – boosting ID verification (KYC) requirements
The crypto exchange has just announced that all sub-accounts created by the Exchange Link account holders under the Binance Link Program have to adhere to the Binance boosted compliance standards. This reportedly includes non-trading sub-accounts created only for asset deposit purposes.
According to the announcement, only verified and compliant users will be granted access to their sub-accounts.
Starting with March 20, Binance has been applying restrictions to sub-accounts that have been not compliant with the KYC documentation in place.
By May 20, sub-account holders who have not provided the necessary KYC info will have their accounts fully restricted and will no longer have access to the Binance Link Program services.
Exchange Link account holders should make sure that they have fully integrated with the Link-KYC module.
This may include info regarding the Source of Funds, Source of Wealth, and Proof of Address.
Exchange Link account holders should also be able to offer information on their sub-account users. The exchange highlighted that incomplete user information would trigger a failure to onboard a sub-account user.
Details on RFI (Request for Information)
Binance’s announcement also addresses the details of RFI.
Source of Funds
The info includes the following: salary, self-employment income, savings, allowance, pension, dividends, payments/profits from a company, day trading, gambling, passive income, loans/mortgages, sale of financial assets, sale of real estate or other assets, inheritance, and donations.
Source of Wealth
The info includes the following: salary, self-employed income, inheritance, donation, mortgages/loans, company profits (shares/dividends), financial investment, and crypto investments.
Proof of Address
The info includes: utility bills, body corporate disclosure statements, building management statements, home insurance statements, mortgage statements, bank or credit card statements, student rental agreements from university residences or university housing/halls, and more.
Politically Exposed Persons (PEP) Declaration
The announcement notes that the exchange could require the sub-account holders to complete a questionnaire for potential Politically Exposed Persons (PEPs).
Exchange Link account holders can download the questionnaire for their sub-account holder(s) to complete via the Link-KYC integration document.
Binance‘s announcement also notes that in certain cases, the funds in a sub-account could be frozen, and access could be restricted for legal and compliance reasons.
