Binance makes major updates globally to meet diverse regulatory requirements
The world’s largest crypto exchange platform Binance has come under scrutiny from financial regulators across the globe. Law enforcement agencies are demanding a probe into Binance’s operations over concerns of crypto money laundering.
Many renowned banks including Santander, Barclays, and NatWest have halted payments to Binance to safeguard their customers from investment scams. The Financial Conduct Authority (FCA) shed light on the risk of Binance’s products and banned its operations in the UK.
Several US agencies including the DOJ and IRS have opened an investigation into Binance for potential criminal violations. Even Japan, which is regarded as a crypto-forward country, raised concerns over Binance’s countrywide operations. Japan’s Financial Services Agency (FCA) warned that Binance is offering crypto services in the country without a license.
In an attempt to tackle tightening regulation, Binance announced some major steps it will take to ensure financial regulations. On August 27, it ended support for the Norwegian language. The platform has also decided to shut its payment facilities and trading pairs for both Korean and Norwegian currencies.
Binance is strengthening its legal teams and focusing on meeting compliance requirements to appease regulatory authorities. Pressure from financial watchdogs has compelled Binance to adopt stricter background checks.
As a result, the crypto exchange platform has made KYC verification mandatory for all its end-users. Furthermore, it has drastically decreased the withdrawal limit for non-KYC users. This effort is directed towards curbing the surge in financial crimes and investment frauds which are quite rampant in the crypto world.