Binance is a centralized exchange that needs to meet local regulations, so, they need to verify your identification with a KYC process.
There are a few steps involved in getting verified. You can also have various levels of verification. So, let’s have a look at how this works at Binance.
Binance currently has four verification levels. You can just verify your account, without KYC. Now you can trade on Binance, but with limits. For example, you have a daily withdrawal limit of 0.06 BTC.
Limits on all accounts differ between countries. This is because of the difference in local regulations. So, let’s have a look at the various verification levels that Binance has.
So, as the levels above show, it pays off getting verified at Binance. Your deposit and withdrawal limits increase with each new level. We already wrote an article about how to set up a Binance account.
When local regulations change, Binance may ask you to re-verify your account. So, most likely this is due to security or regulatory issues.
Source: Binance website, at your profile settings
Part of the verification process is the KYC procedure. KYC means ‘Know Your Customer’. It’s a legal requirement that helps to control illegal activities. For example, it allows Binance to combat hackers or hacked funds. The KYC procedure is part of the broader AML umbrella. This is the Anti Money Laundering process. KYC entails identification verification.
The benefit of verification is that you can enjoy upgraded tiers. As a result, deposits and withdrawals increase. It also allows using your credit or debit cards.
The picture below shows you the steps of the KYC procedure. This includes the Verified (Level 1) and Verified Plus (Level 2) levels.
Source: Binance blog
Binance is an exchange that takes ID verification seriously. For instance, they have a zero-tolerance policy on;
The actual verification process takes around 15 minutes. You will need to submit some paperwork. For example, an officially issued ID card, like a passport or driver’s license. There’s also a facial recognition test. In the EU, you have to provide a proof of address (POA). In non-EU countries, a POA is only needed if you like to upgrade to Verified Plus. We explain this in our ‘How to set up a Binance account’ article. See the link that we supplied earlier in this article. Binance usually reviews the documents within a 10-day period.
One question that may arise is how this affects decentralization. The same goes for anonymity. That’s one of the appealing factors of crypto and blockchain technology. A KYC requirement goes against this because it gives power to a centralized authority. So, for some potential users, it may be a high price to pay, to lose your anonymity. The fear of your private information going public is real. Hackers may access your information. However, Binance has a secure and dedicated system for the KYC procedure. And once you buy on Binance since so many coins are available there, you can then move it to a wallet or protocol that is more private and decentralized.
We showed you the various verification levels that Binance has. These help in enhancing security measures. This way, Binance also meets global financial regulations. Another benefit is that you can unlock higher trading limits.
Part of the verification process is the KYC procedure. However, now you know why this is needed and how it works. Binance is also serious about this. For example, they make sure that your information is secure and private.
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Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. This article has been sponsored by Binance. Copyright Altcoin Buzz Pte Ltd.
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