Binance is ramping up its enforcement of user verification as the crypto exchange faces regulatory pressure
- Crypto exchange Binance on Friday told new and existing customers to complete an ID verification process.
- The company, which is facing regulatory scrutiny worldwide, said the process will help combat financial crime.
- Users must upload a selfie for facial recognition as part of the verification process.
Binance, the world's largest cryptocurrency exchange, said Friday customers will need to provide government-issued identification and pass a facial verification process to trade on its platform, making the move as the company faces regulatory scrutiny worldwide.
In a statement, the company said effective immediately all new users must complete "Intermediate Verification" to access cryptocurrency deposits, trades and withdrawals. Existing users who haven't completed ID verification will see their account permissions temporarily changed to limit services to withdrawals, order cancellations, closing positions, and redemptions.
"Binance is announcing these measures to help support its efforts in Know Your Customer (KYC) and Anti-Money Laundering (AML). This will further enhance user protection and combat financial crime," the company said.
The company walks customers through the process which includes uploading pictures of documents, with passports, ID cards, or driver's licenses acceptable paperwork. Customers must also upload a selfie for face verification.
Binance is facing governmental scrutiny around the world, with some regulators banning the platform and others limiting its use or warning customers about risks. Binance's business largely expanded by allowing users to trade crypto derivatives using high amounts of leverage, or borrowed money. Regulators have expressed concerns about the risks the products may pose to consumers and the broader economy.
Binance CEO Changpeng Zhao this week said he spends "probably 80% or more" of his time dealing with regulatory issues, rather than day-to-day operations of the exchange itself.