The world’s biggest cryptocurrency exchange by trading volumes, Binance, stays on the ‘right’ track when it comes to its efforts to maintain dialogue with global regulators. In their latest move for more compliance and what seems good will, they have introduced withdrawal limits and a new tax reporting system.
On Tuesday, the company officially announced a major update to its Know Your Customer(KYC) policies, thereby significantly reducing maximum withdrawal amounts for users who have not completed full identity verification.
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
New Binance accounts, users who have completed only basic account verifications will not be able to withdraw more than 0.06 Bitcoin (BTC) per day, worth roughly $2,400 at the time of writing. Before, the maximum daily withdrawal amount was set at 2 BTC, or about $80,000.
The announcement also revealed that Binance will apply these new withdrawal limits to existing users in phases starting from Aug. 4. The exchange expects to have fully adopted new withdrawal restrictions entirely by Aug. 23. Upon completion of full identity verification, Binance users will be still able to withdraw up to 100 BTC in a day, or nearly $4 million at BTC prices at the time of writing.
The same day, Binance also rolled out its new tax reporting tool which is an Application Programming Interface. This enables Binance users to track their crypto transactions, transfer their transaction history to third-party vendors, and obtain instant overviews of their local tax liabilities. This initiative is part of the exchange’s broader strategy focusing on user protection and risk management.
We just launched a new tax reporting tool. It’s an API which you can use to track crypto activities and connect to third party tax vendors to streamline reporting requirements. https://t.co/QA5KW4Ec3Q
— CZ
In a warning states on the tax reporting instruction page, Binance says it “is not endorsing any particular third-party tax tool software. Please exercise your own discretion and/or consult your personal tax adviser based on your personal tax circumstances and requirements when selecting the third-party tax tools.”
Binance has acted convincingly in their effort to mitigate effects of an ongoing global regulatory crackdown on the exchange. Trading restrictions were implemented this week as the exchange delisted margin trading pairs for three fiat currencies. Binance also reduced maximum leverage on their derivates markets from 125x down to 20x. Earlier in the year the exchange started hiring or working closely with (former) government regulators and officials.
While Zhao also hinted on Tuesday that he might consider step down as CEO following some Tweets, he did confirm no immediate plans to the matter.
We are always hiring for CEOs.
I don't need to be CEO, and I am not leaving. I will always find ways to contribute to the community behind the logo tattooed to my forearm.
I am proud to be a member of the #binance ecosystem. Let's keep growing it.
— CZ
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