The world’s biggest cryptocurrency exchange platform is now under pressure from regulators across the world. Many countries are concerned that crypto can be used to launder money. In this situation, Binance decided to perform background checks on customers so that it can take action against money laundering.
The risk of money laundering due to cryptocurrency exchange is a major concern throughout worldwide regulators. Even the Dutch central bank said that the activities of Binance were not in compliance with its anti-money laundering and anti-terrorist financing laws.
In this situation, Binance has decided to scale back its product offerings. They have leveraged trading and tokens linked to equities. They also said that they want to improve relations with regulators. They assure that users have to complete a document-based ID verification process to have access to its products and services.
Binance said in a statement, “Until now, document-based ID checks at Binance were only required for users who wanted higher limits on trading. Users will now have to upload an ID card, driver’s license, or passport to prove their identity.” Later Binance CEO Changpeng Zhao tweeted, “actions speak louder than words”.