Due to regulatory issues, Binance has limited daily withdrawals for basic accounts to $2,000 per day.
Binance, a major cryptocurrency exchange, stated today that users who passed the “Basic” verification will soon be limited to withdrawing 0.06 Bitcoin (approximately $2,000) per day, down from the previous limit of 2 BTC (about $80,000).
The platform announced that “Daily withdrawal limits will be adjusted to 0.06 BTC for accounts which have completed only Basic Account Verification,”.
New users will be subject to the new regulation immediately, according to Binance, while current basic accounts will be subject to the new restriction 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,” according to Binance CEO Changpeng Zhao on Twitter.
The new restrictions are part of Binance's general attempt to "adapt to changing rules in order to best serve our users," he added.
To counteract money laundering and other illegal activity, tougher know-your-customer (KYC) rules are frequently implemented.
Personal accounts on Binance now have three levels of verification: Basic, Intermediate, and Advanced.
Users only need to fill in their name, nationality, date of birth, and address at the most basic level.
Customers can immediately engage in crypto-to-crypto trading as well as withdraw and deposit digital assets and small sums of fiat (up to $300 for the account's lifetime) with such an account.
Meanwhile, users will be required to produce photographs and other papers that confirm their personal data for intermediate and advanced verification.
The regulatory pressure is increasing.
The latest action comes as Binance has been under increased scrutiny from regulators around the world in recent months.
The exchange has delisted a number of trading pairs involving the Australian dollar (AUD), the Euro (EUR), and the British pound sterling(GBP), according to CryptoSlate.
In response to regulatory pressure from the United States, Japan, Hong Kong, the United Kingdom, Italy, and the Cayman Islands, Binance reduced the maximum leverage for new margin traders to 20x and halted the sale of "stock tokens."