Why Is KYC Important For Your Crypto Account?
KYC is a standard regulatory requirement for financial service companies. These inspections are primarily aimed at preventing money laundering and funding from illegal activities. KYC is a crucial safeguard for cryptocurrencies since it is a key step in anti-money laundering legislation. Customers and their valuables are increasingly being safeguarded by financial institutions and service providers like Binance.
What is KYC?
KYC is the process by which financial service companies verify their clients’ identities. KYC standards, like AML regulations, aid in the fight against money laundering, terrorism funding, fraud and the unauthorized movement of cash. This might be done, for example, by formal identity or bank statements.
Before they may execute financial transactions, most financial service providers collect a customer’s information during the on boarding process. Accounts may be opened without KYC in some situations, although their functionality is limited. Users can establish an account on Binance, for example, but trading is restricted until KYC is completed.
You may be required to submit the following information when completing KYC:
_Identification from the government
_Valid driver’s license
It’s also crucial to validate a customer’s location and address, in addition to their identification. Basic information such as your name and date of birth will be provided by your identity cards, but extra information is required to establish your tax residence, for example. There’s a good chance you’ll have to go through more than one level of KYC. Financial service companies are frequently required to re-verify their clients’ identities at regular periods.
KYC leads to a more secure community
KYC is required to comply with anti-money laundering (AML) and anti-bribery laws at both the global and national levels. Since 1989, several nations across the globe have pledged to adopt the Financial Action Task Force’s recommendations; nevertheless, there is no one or consistent definition of KYC, and different areas around the world have varying forms of AML or KYC law.
Overall, the goal of KYC is to prevent criminal groups from using financial/non-financial enterprises for money laundering, terrorist funding, and other unlawful objectives, whether knowingly or inadvertently. Businesses may obtain a better knowledge of their clients and their financial operations by establishing KYC systems, and they can reject candidates with questionable or dangerous histories. Businesses can simply monitor customer activity and avoid danger as a result of this.
KYC not only enhances security, but it also opens up new avenues for crypto-asset consumers to use and use the technology. Some of the more efficient cryptocurrency exchanges and wallet providers can now complete KYC in under an hour.
KYC, as well as other anti-money laundering (AML) and compliance requirements, has contributed to the global crypto industry being more safe, trustworthy, and compliant.
Benefits of getting verified
It increases financial service providers’ confidence, security, and responsibility. The financial industry as a whole benefits from this reputation, which can stimulate investment.
The new daily withdrawal limit on Binance
Daily withdrawal restrictions will be reduced to.06 BTC for accounts who have completed only Basic Account Verification,” according to a statement published by Binance on July 27, 2021. This is a substantial reduction from the previously allowed daily withdrawal limit of 2 BTC.
Do you want to take out additional money? You’ll have to go through the KYC process.
Customers who want to raise their daily withdrawal limit on Binance must first complete the Know Your Customer (KYC) verification process. Customers that have completed KYC will be allowed to withdraw up to 100 BTC each day.
Users will be required to provide a selfie as well as photos of their passport, ID card, or driver’s license in order to receive this verification. Basic account verification, which simply requires a name, date of birth, and address but no supporting papers, is a step higher.
Binance changed the daily withdrawal limit for a reason.
This upgrade is a response to a surge of pressure from nations such as the United Kingdom, Italy, and Japan, all of which have recently banned Binance in their respective countries owing to the exchange’s lack of regulation.
These KYC checks are seen as a means for regulatory agencies to prevent money laundering and other fraudulent and illegal actions. Increased KYC processes also make it easier for law enforcement and tax authorities to track, monitor, and confiscate illicit funds.
KYC and Fiat-to-Binance Exchanges
Because they are dealing with fiat currency, which is recognized as legal tender by governments, fiat-to-crypto exchanges generally complete at least some degree of KYC. Banks and other conventional financial institutions must do business with such exchanges, and the majority of them complete their own KYC before doing business with other companies.
Restrictions for non-KYC accounts
Users who complete KYC on Binance receive a tier upgrading, which includes cheaper fees and larger withdrawal limits. Users with unverified accounts may only withdraw 0.06 BTC per day, whereas those with verified accounts can withdraw up to 100 BTC per day.
Keep in mind that KYC is only required for customers who use credit or debit cards to make purchases. Those who want to make large transactions on a regular basis will benefit from completing their KYC on Binance. If you don’t finish your verification, you might have trouble withdrawing money from your Binance account. As a result, Binance advises all users to finish the KYC process as soon as possible.
Binance has three layers of account verification (Basic, Intermediate, and Advanced).
Each has its own deposit and withdrawal restrictions, with Basic allowing withdrawals of up to 2 BTC ($80,000 at today’s values).
_Name, nationality, date of birth, and address are all that is required (the latter without proof).
_Intermediate requires a video of user faces in order to withdraw 100 BTC ($400,000) or more from the site every day.
_Withdrawals of up to 100 BTC ($4 million) per day are possible with advanced (photo ID and proof of address).
How to KYC on Binance
Binance has a simple KYC verification process. You may verify your Binance account by following the instructions below.
1. Go to Binance.com and sign up for an account.
If you are a first-time user, you must register an account using your email address or phone number and a password. It takes no more than five minutes to create an account. If you’re already a member, simply log in with your information.
2. Click [User Center] — [Identification]
3. You can view several levels of verification, such as Basic, Intermediate, and Advanced, as well as their deposit and withdrawal limitations. Various nations have different restrictions. By clicking the button next to [Residential Nation/Region], you may change your country.
4. Then, to begin, click [Verify Now].
5. Click [Continue] after entering your personal information.
Please double-check that all of the information you’ve provided matches what’s on your ID documents.
6. Your account is now verified for [Basic]. To further increase your trading limits, click [Upgrade] to verify for [Intermediate].
7. After that, you’ll need to upload photos of your identification documents.
8. Following the submission of the document images, the system will prompt you to take a selfie. To add an existing photo from your computer, click [Upload File].
9. The system will then ask you to perform face verification.
Please avoid wearing caps, glasses, or filters, and make sure the lighting is adequate.
10. Please wait patiently after finishing the process. Binance will conduct a prompt examination of your data. We’ll send you an email notification once your application has been confirmed.
You may purchase crypto with cash from Binance via bank transfer or card methods, or you can buy crypto with cash from other sellers on Binance P2P.
P2P Buy/Sell https://p2p.binance.com/en?ref=36687617
Disclaimer: Investing in cryptocurrencies has a high level of market risk. Binance is not liable for any trading losses you may incur. The preceding remarks and opinions should not be construed as financial advice.