Binance has introduced mandatory Know Your Customer (KYC) verification for all sub-accounts under its Link Program, with non-compliant accounts facing escalating restrictions leading to suspension.
Key Changes and Compliance Requirements
Enhanced KYC Standards for Sub-Accounts
- Effective Date: March 20, 2024 (restrictions began).
- Deadline: May 20, 2024 (full account suspension for non-compliance).
- Scope: Applies to non-trading sub-accounts (e.g., asset deposit accounts) and trading sub-accounts.
Responsibilities for Exchange Link Account Holders
- Integration: Ensure sub-accounts are linked to the Link-KYC module.
Information Provision: Submit additional details on behalf of sub-account holders, including:
- Source of funds/wealth.
- Proof of address.
- Communication: Relay Binance’s directives to sub-account users (Binance communicates only with primary account holders).
PEP Screening Questionnaire
To comply with AML regulations, sub-account holders may need to complete a Politically Exposed Persons (PEP) questionnaire covering:
- PEP status.
- Occupation/employer details.
- Relationships to PEPs.
Consequences of Non-Compliance
Trading Restrictions
- Spot Trading: No new orders; existing orders canceled.
- Futures/Margin Trading: Only position reduction allowed.
Deposit and Refund Policies
- Deposits: Blocked for restricted accounts.
- Refunds: Misplaced deposits may take 45 days to process.
- Fee: $200 administrative charge per appeal (regardless of deposit amount).
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Why This Matters
Binance underscores that KYC compliance fosters a secure, transparent trading environment. Users are advised to:
- Consult financial advisors before investing.
- Proactively complete verification to avoid disruptions.
FAQs
1. What happens if I miss the May 20 KYC deadline?
Your sub-account will be fully suspended, losing access to Binance Link Program services.
2. Can I trade while my KYC is pending?
No. Restrictions apply immediately upon detection of incomplete KYC.
3. Is the $200 refund fee negotiable?
No. The fee is fixed per appeal, irrespective of deposit size.
4. How do I submit a PEP questionnaire?
Binance will notify primary account holders if required.
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