A circle of fire once again surrounds Binance. At present, somewhere around 7-8 different countries are issuing warnings regarding Binance or prosecuting the crypto exchange platform. Therefore, Binance has taken a chapter out of the caution’s book, and its management is making some drastic changes in its user policies.
According to the revised and more austere regulations, the consumers who have an unverified account are facing some cutbacks in their daily transaction limit. Before the new policy was introduced, all the consumers were able to send and receive as many as 2 BTC units per day. This limit has been cut down to 0.06 BTC for the time being. As per Binance, this is part of the bigger plan that could convert a major chunk of their users into verified account holders.
New Policies will Reduce Illegal Activities such as Money Laundering
The management of Binance is hoping to reduce the increasing regulatory pressure from many countries. The users of Binance did not need to verify their home address, real name, office credentials, or any type of government-bound ID card. According to the Binance, such a step is a great way to break away from the association of criminal associations like money laundering.
The news is not all bad for the users of Binance. The crypto exchange platform is incentivizing the user to get their accounts verified. Many people who are focusing on a 97% transaction limit cut down can be cheered by the benefits of a new and verified account. The users who comply with all the KYC requirements will be able to send and receive 100 Bitcoin within 24 hours. At the current price, this amount of BTC is valued at $3.7 million.
Binance CEO, ChangPeng Zhao, has been speaking with the media and making the message clear that Binance is making big changes in their consumer policies to comply with the demands of the regulators. The largest crypto exchange in the world has also confirmed that it has stopped tokenized stocks. The regulatory authorities of Canada and Italy indicate reservations about the unregistered securities.
Multiple regulatory authorities claimed that Binance does not have the authorization to trade in securities. There are many reports in the media that regulators are looking to take action on Binance for non-compliance with the universal AML regulations.