On Tuesday (July 27), crypto exchange Binance announced a number of steps it is taking to improve the company’s regulatory compliance.
It should be noted that this is just the start and that Binance plans to do even more in the future to make financial regulators around the world happy.
Here are the measures that CZ mentioned in a Twitter thread he posted earlier today:
- Binance has started “processes for licenses & approvals where there is an existing legal framework for crypto exchanges” and it will “actively work with regulators as more crypto-specific frameworks are introduced.”
- To encourage users to go through the “Know Your Customer” (KYC) process, Binance is reducing the daily withdrawal limit from 2 BTC to 0.06 BTC for accounts that “have only passed Basic account verification.” This change is “effective immediately for new account registrations and will be made effective for existing users in phases starting from 2021-08-04 00:00 AM (UTC) and completed by 2021-08-23 00:00 AM (UTC).” People who complete Identity Verification will have their daily withdrawal limits increased to 100 BTC.
- Rules for Binance Futures leverage have been updated for new accounts such that now “leverage levels of over 20x will not be available to futures accounts within the first 60 days of their opening.” New accounts will have their leverage limits “gradually” increased “only after 60 days from opening.”
- Binance is launching at 04:00 UTC tomorrow (July 28) a new API tool aimed at helping Binance users “to easily keep track of their crypto activities in order to ensure they are fulfilling the reporting requirements laid out by their regulatory bodies.”
- Binance is “actively hiring leadership with regulatory and compliance experience.”