It has been a complete month since Binance has been undergoing aggressive scrutiny by the regulators against its services. The exchange has been trying its best to maintain a decent dialogue with the regulatory authorities.
While it is doing that, it is also making changes to its policies and the way it is operating to avoid any further regulatory conflicts with the regulatory authorities. The exchange has just made another announcement that could be perceived as another low blow to the cryptocurrency community.
Just recently, the largest cryptocurrency exchange by trading volume has announced that it is introducing limits to withdrawals. The firm has revealed that the withdrawals from the exchange would be limited. Furthermore, the exchange would soon be introducing a new reporting system for taxes. The exchange has revealed that the tax reporting system would be integrated into the exchange’s infrastructure.
The reports suggest that the exchange has also introduced a new update in regards to the KYC policies it had adopted in the past. The firm made the announcement around the updating of the KYC policies on Tuesday, July 27, 2021.
The exchange is now making the necessary attempts in order to re-establish its warm and positive relationships with the regulatory authorities. This is the reason why it is reducing the intensity and taken down services that may attract more regulatory scrutiny.
In the announcement, the firm has announced that the withdrawal limit would not be set for all the users at the exchange. Instead, it would be for specific users using services of the major cryptocurrency exchange. The firm has announced that the users that have failed the KYC verification process are the ones that would have to bear the withdrawal limit.
Therefore, the exchange has announced that the users who wish to increase their minimum withdrawal limit would need to verify their profiles under the KYC regulations. In order for the users to fully avail of the services offered by Binance, they would have to complete their full identity and have it verified.
The exchange has announced that the users that have not verified their identities under the KYC policy can only withdraw money worth 0.06 Bitcoin (BTC). According to the exchange’s announcement, the 0.06 Bitcoin withdrawal limit has been set on a daily basis. This means that the unregistered users would only be able to withdraw $2,400 worth of Bitcoin through its platform on a daily basis.
This is a limitation that has been imposed over the profiles of the basic traders on the exchange. Prior to this, the users with a basic level trading account at the exchange were allowed to withdraw a maximum of 2 BTC per day. At the time of writing, 2 BTC are worth around $80k.