Binance threatens full restrictions on unverified sub-account holders

Cryptocurrency exchange Binance has announced measures that will be taken against users with accounts on its Exchange Link program. According to the announcement, Binance has mandated users of sub-accounts to ensure prompt completion of their mandatory Know Your Customer (KYC). The exchange noted that only users who have complied with the directive will be allowed to access their accounts.

Binance set to restrict sub-accounts without KYC

The announcement also mentioned that the exchange has been taking action against unverified users since March 20. Notably, Binance has also issued an ultimatum against the affected users. However, it noted that by May 20, all users who are yet to comply with the order will be restricted from using the Binance Link Program Services.

The notice clarified that users will be able to withdraw funds from their accounts but will be unable to make deposits. However, the exchange clarified that misplaced deposits would take up to 45 days before they are refunded. It also adds that an administrative fee of $200 will be charged for appeals regardless of the deposit amount.

The notice also mentioned that the accounts would also be restricted from making trades in spot trading, while all open orders would be automatically canceled. Meanwhile, in futures and margin trading, the restricted users will not be able to open new positions but will be allowed to reduce their existing positions.

Consequences for non-compliant users

The exchange clarified that only the Exchange Link account holders can provide any additional information on behalf of their sub-account users. These include proof of address, source of funds, and some other details. Binance also provided an option for sub-account users to choose if they are involved in politics. The notice requires such users to provide the position that they hold and the details of their employers.

The exchange also mentioned that users related to people holding political positions must include the relationship they share with such people. Binance explained that due to legal and compliance rules, it holds the right to restrict access and freeze the funds in a sub-account.

The exchange explained that if such an incident occurs, the exchange will not be able to provide a detailed explanation to the Exchange Link account holders or their sub-account users due to legal restrictions. Furthermore, the exchange mentioned that it also reserves the right to restrict access to an Exchange Link holder’s account for failure to respond or cooperate. This could also lead to the exchange downgrading their accounts and the sub-accounts under them risking deletion.