Binance restricts unverified sub-accounts on the Exchange Link program

Crypto exchange Binance has announced mandatory Know Your Customer (KYC) requirements for Exchange Link account holders under the Binance Link program.

On April 5, Binance said that only verified and compliant users will have access to their sub-accounts. The rule also applies to sub-accounts created for deposit purposes and not for trading purposes.

The exchange said it has been enforcing its rules on non-compliant sub accounts since March 20 and is issuing an ultimatum to unverified sub account holders.

The exchange noted that sub-accounts that did not submit the required KYC information by May 20 will be “completely restricted” from accessing Binance Link program services.

Accounts with incomplete KYC information will have their deposits restricted. However, they are allowed to withdraw their money.

When it comes to trading, banned accounts cannot place new orders on spot trading and all their existing orders will be cancelled.

In futures and margin trading, restricted accounts cannot place new orders but are allowed to reduce their current positions.

Binance states that Exchange Link account holders must submit any additional information on behalf of sub-account holders. This includes their source of funds, assets and proof of address.

Binance also added steps to determine if a sub-account user is involved in politics. If the user is politically exposed, Binance will ask them to provide their position and employer details.

Those related to Politically Exposed Persons (PEP) must provide details of their relationship with the PEP.

It also noted that exchanges may freeze funds in sub-accounts and restrict access for legal and compliance reasons. The exchange wrote:

“In such cases, Binance may sometimes not be able to provide detailed explanations to the Exchange Link account holder or their sub-account user for legal and compliance reasons.”

It also noted that the exchange may restrict access to non-responsive or uncooperative Exchange Link account holders. This may result in accounts being demoted and their sub-accounts being deleted altogether.

Related: Binance exec legal case in Nigeria extended to April 19

Meanwhile, Binance's nonfungible token (NFT) arm has announced that it will end support for Bitcoin Ordinals trading and deposits on April 18.

The exchange is part of its efforts to streamline its offerings on the Binance NFT marketplace. Binance will stop offering Bitcoin NFT-related airdrops, benefits and utilities after April 10th.

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