Cryptocurrency exchange Binance will require all customers to undergo a Know Your Customer (KYC) process, starting today.
Delivering on a promise from July, the process is common practice in the banking and gambling sectors and used to prevent identity theft and money-laundering.
The company said: “We are announcing these measures to double down on efforts relating to Know Your Customer (KYC) and Anti-Money Laundering, which will further enhance user protection and combat financial crime.”
Binance, which has found itself beleaguered by regulators around the world, has vowed to up the transparency of its platform and responded to multiple calls to fall in line with anti-money laundering (AML) and anti-terrorism financial legislation.
According to financial regulators in the UK, Italy, the Cayman Islands, Singapore, Malaysia and Japan, the company has fallen short of those standards by not requesting KYC, until now.
Binance will expect every user to undergo KYC, including those who already have accounts on its platform. The exchange will only allow those users who have been verified to continue and withdraw cryptocurrencies.
Other exchanges, such as Coinbase, require KYC verification as step one, and won’t let you use any of their services prior to this process being finalized.
Originally, it was expected that users would only need to complete a basic tier of verification, providing a name and address. However, Binance is now requiring all users to comply with the intermediate tier, which means they will have to upload passport details as well as a selfie.
The company continues to battle legal challenges as its CEO Brian Brooks announced he would be stepping down earlier in August.
Such KYC verifications are used even at igaming websites that operate primarily in crypto. Bitcasino.io, FortuneJack and Cloudbet expect consumers to pass a brief verification process so they can access the full variety of features available.