Binance limits daily withdrawals to $2,000 for basic accounts amid regulatory woes 🚨 This article is 3 years old...
Binance limits daily withdrawals to $2,000 for basic accounts amid regulatory woes
Crypto exchange Binance continues “to adapt to new regulations” by "enhancing" its know-your-customer efforts.
2 min read
Updated: Jul. 28, 2021 at 8:42 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Major cryptocurrency exchange Binance today announced that users who passed only “Basic” verification soon won’t be able to withdraw more than 0.06 Bitcoin (roughly $2,000) worth of funds per day—down from the previous limit of 2 BTC (around $80,000 currently).
“Daily withdrawal limits will be adjusted to 0.06 BTC for accounts which have completed only Basic Account Verification,” the platform stated.
The change is effective immediately for new users, Binance added, while already existing basic accounts will become subject to the new rule in phases—from August 4 to August 23.
“We’re enhancing our KYC efforts to further our leadership in this area. Daily withdrawal limits will be adjusted from 2 BTC to 0.06 BTC (roughly ~$2,000 USD) for accounts who have only passed Basic account verification,” Binance CEO Changpeng Zhao confirmed on Twitter.
We’re enhancing our KYC efforts to further our leadership in this area.
Daily withdrawal limits will be adjusted from 2 BTC to 0.06 BTC (roughly ~$2,000 USD) for accounts who have only passed Basic account verification.https://t.co/gdim6HdLhU
— CZ ? Binance (@cz_binance) July 27, 2021
He further added that new limits are part of Binance’s overall effort “to adapt to new regulations in order to best serve our users.” In general, stricter know-your-customer (KYC) requirements are usually put in place to combat money laundering and other illicit activities.
Currently, there are three verification levels for personal accounts on Binance: Basic, Intermediate, and Advanced. For the basic level, users just have to fill in their name, nationality, date of birth, and address. With such an account, customers can quickly engage in crypto-to-crypto trading as well as withdraw and deposit digital assets and minuscule amounts of fiat (up to $300 for the account’s lifetime).
Meanwhile, for intermediate and advanced verification users will have to also provide their photos and other documents that confirm their personal data.
Regulatory pressure intensifies
The latest move comes amid the gradually increasing heat that Binance has been facing from regulators across the globe lately. As CryptoSlate reported, the exchange has recently delisted numerous trading pairs that involved the Australian dollar (AUD), the Euro (EUR), and the British pound sterling (GBP).
.@binance futures started limiting new users to max 20x leverage last Monday, Jul 19th, 7 days ago. (We didn't want to make this a thingy).
In the interest of Consumer Protection, we will apply this to existing users progressively over the next few weeks.
Stay #SAFU. ?
— CZ ? Binance (@cz_binance) July 26, 2021
Binance also limited the maximum leverage for new margin traders to 20x and dumped “stock tokens” amid regulatory pressure in the U.S., Japan, Hong Kong, Britain, Italy, and the Cayman Islands.
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Liam Frost
Liam Frost is a freelance journalist and editor with over 15 years of experience working for various media outlets across the world.
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Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.