Binance is a crypto exchange working globally and expanding its operation in multiple regions of the world at the same time. Binance has faced a lot of issues in the past and regulatory concerns, especially in London, New York, and other capital regions of the world along with China. It started offering regulatory insight to users in London without any authentication or retrieval of license from the concerned bodies.
For this very action, Binance was banned immediately regarding the further operation in London. Central banks and financial institutions cut their ties with Binance, and as it happens, the crypto exchange is treading very lightly and cautiously. Although it is neither mandatory nor in writing that every crypto exchange must abide by KYC and AML policies, it should be compulsory for every exchange to continue its operation.
Given the regulatory heat, Binance is taking at the moment, the crypto exchange has decided to minimize the daily withdrawal limits for unverified users by 97%. The news might come out as a shock for those users who prefer anonymity and don’t want to share their personal information with the exchanges, but at the same time, market analysts have hinted that this is the best decision Binance could go for under such extreme regulatory duress.
Binance is Taking Necessary Measures to Avoid Regulatory Pressure
According to an insider, Binance has limited the daily withdrawal limit for unverified users in the range of 2 BTC to 0.06 BTC every day. These new guidelines are already in effect for every new user who registers with Binance, and for the current users, this modification will take effect from 4 August to 23 August.
To issue a withdrawal limit to unverified users has become a standard norm among crypto exchanges that want to limit illegal activity and illicit funds transfer from their exchange. Binance is perfectly rational as every user would have to submit their official name, address, and email address for the registration process. None of this information will be cross-referenced or checked from any government-backed record and is for exchange’s use only. This is the way how crypto exchanges will move forward now when it comes to dealing with funds and people engaged with transactions.