![]() Binance has not yet requested a proof of source of wealth for the financial means and assets of the customers. Anonymous trading in this form is prohibited in the vast majority of countries around the world for good reason. This is because people were able to sign up for trading there without any verification. The actions of Binance already seemed strange for years. Another sign of the low risk awareness of most investors in Bitcoin and other cryptocurrencies. This warning message did not cause any reaction in the cryptocurrency market, even though Binance is one of the largest crypto exchanges in the world. Only recently, the British financial regulator FCA publicly warned against Binance Markets Limited and Binance Group. However, Binance in particular, as a platform on which Bitcoin and other cryptocurrencies are tradable, has already attracted negative attention in the past with regard to regulatory requirements. Not Very Praiseworthy: Binance’s Past in Terms of Source of Funds.Īfter all, the cryptocurrency sector is generally still a very weakly regulated asset and service field. What sounds banal at first glance means a paradigm shift in Binance’s own compliance policy, especially for Binance as one of the largest crypto exchanges in the world. In other words: Binance wants to know who is behind the user accounts. Both new and existing Binance users have to undergo an identity check and verification as part of this intermediate verification. This refers to the interim verification mentioned at the beginning and now introduced. In the tweet, Binance points out innovations in the KYC ( Know Your Customer) area. As an important step forward, we’re updating our global KYC requirements for all users. So it comes as little surprise that the now (allegedly) Malta-based crypto exchange Binance now also seems to bow to the pressure of the regulators in the field of cryptocurrencies and informs its users about innovations with the following tweet:īinance constantly reviews its products and services to enhance user protection, provide a safe crypto environment and to align with the evolving global compliance standards. Binance Announces First Step Towards Proof of Source of Wealth! There are numerous reports of blocked user accounts. This involves questioning both the source of the money and the source of the cryptocurrencies (which were not purchased from Bitpanda). The recent tightening of EU anti-money laundering law is also the reason why, for example, the Austrian-based crypto exchange Bitpanda has recently started requiring proof of wealth (more precisely: proof of source of funds) from its users. These certain transactions present themselves on a crypto exchange in particular through the trading of cryptocurrencies and the deposit and withdrawal of fiat money. ![]() Crypto exchanges, as so-called obligated parties in the sense of the GwG, must now also demand proof of the source of the financial resources and cryptocurrencies from their users for certain transactions. The sensitive intrusion into the privacy of citizens, which the proof of source of wealth represents, does not only refer to cash. ![]() On this website, we provide comprehensive information on these obligations around the proof of source of wealth, which have recently come into force. With the latest amendments to the Money Laundering Act (“ Geldwäschegesetz“, GwG) and BaFin‘s application notes, Germany implemented stricter European regulations for combating money laundering and terrorist financing into German law. The topic of proof of source of wealth is currently on everyone’s lips in Germany. Why Even Binance Requires Proof of Source of Wealth Very Soon! However, it should only be a matter of time that Binance also demands a source of wealth declaration for money and the cryptocurrencies. Primarily, it is supposed to be about the identity verification of the users. The background here is ostensibly also the fight against money laundering and terrorist financing. This was announced by the exchange in an information on the update of Binance services. The crypto exchange Binance will from now on oblige both new and existing users by conducting a so-called intermediate verification. Binance Requires Source of Wealth Declaration for Money and Cryptocurrencies
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