The exchange platform Binance feels the regulatory vise tightening around it more and more. While it was among the most permissive crypto exchanges in terms of customer identity verification (KYC) until now, things have suddenly changed.
Bitcoin withdrawal limit divided by 30
For several weeks, Binance has been under attack from financial regulators around the world. In the United Kingdom, Japan and Italy, the crypto exchange hardly sees a day without a new problem.
It is in this increasingly hostile environment that the exchange platform has just announced a rather radical change. The daily cryptocurrency withdrawal limit has been greatly lowered for customers who have completed the minimum identity verification.
According to the announcement released this July 27, this limit is indeed going from 2 bitcoins – or not far from $80,000 – to only 0.06 BTC, or about $2,400.
“Daily withdrawal limits will be adjusted to 0.06 BTC for accounts that have only completed basic account verification. This change takes effect immediately for new accounts and will be effective for existing users in stages, starting August 4, 2021 and ending August 23, 2021.”
The regulatory specter looms over Binance
Founder and current CEO of Binance, Changpeng “CZ” Zhao, indirectly confirmed that this announcement comes in response to the regulatory pressure that is increasingly being felt on the cryptosphere. In a tweet following the announcement, the executive explained his company’s desire for compliance:
“Binance is ready to help regulators around the world and together find the optimal way to establish a level playing field – consumer protection is important to us all. We want to create a sustainable ecosystem around blockchain technology.”
In order not to see their services restricted overnight by financial regulators, crypto exchanges are gradually bending to the legislation that is flourishing in the crypto-asset sector. It should be remembered that Binance and FTX had already recently lowered their maximum leverage to stroke the regulators in the direction of the hair.