Binance has announced a significant update to its user verification policy, requiring all users—both new and existing—to complete intermediate-level identity verification in order to maintain full access to its platform services. This sudden move, unveiled on Friday, August 20, underscores the exchange’s intensified push toward global regulatory compliance amid mounting pressure from financial authorities worldwide.
The policy shift means that new users must now complete Intermediate Verification before they can deposit, trade, or withdraw cryptocurrencies. This includes access to core features such as spot trading, futures, and staking services. Meanwhile, existing users who previously enjoyed limited functionality without full verification will soon face restrictions unless they comply.
What Happens If You Don’t Verify?
For unverified or partially verified users, Binance will gradually limit platform access. Affected accounts will only be allowed to:
- Withdraw funds
- Cancel open orders
- Close existing positions
- Redeem staked assets
These restrictions are designed to phase in gradually, minimizing disruption. However, Binance emphasizes that only users who complete Intermediate Verification will retain full functionality across all products and services.
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Why Is Binance Enforcing This Now?
Binance states that this update is part of its ongoing commitment to user protection, anti-money laundering (AML) compliance, and countering terrorist financing (CTF). The exchange has long maintained a tiered verification system, but the latest enforcement reflects a strategic pivot toward stricter Know Your Customer (KYC) standards.
Binance’s Three-Tier Verification System
- Basic Verification
Requires minimal personal details such as full name, date of birth, and address matching official documents. - Intermediate Verification
In addition to basic information, users must upload a government-issued ID (e.g., passport or driver’s license) and a real-time selfie for facial recognition. - Advanced Verification
Designed for high-volume traders and institutional users; includes proof of address via utility bills or bank statements and additional financial documentation.
Completing Intermediate Verification not only ensures uninterrupted trading but also increases withdrawal limits and unlocks advanced trading tools.
Regulatory Pressure Driving Change
This policy update comes at a time when Binance faces escalating scrutiny from global regulators. On August 18—just two days before the announcement—the Dutch Central Bank (De Nederlandsche Bank) issued a public warning stating that Binance is operating illegally in the Netherlands without proper authorization and failing to meet local AML and CTF requirements.
This is not an isolated case. Multiple jurisdictions have raised red flags:
- Japan’s Financial Services Agency (FSA) has repeatedly warned Binance about unauthorized operations.
- Hong Kong’s Securities and Futures Commission (SFC) cautioned investors about unlicensed activities.
- The UK’s Financial Conduct Authority (FCA) denied Binance’s application for AML registration.
- Italy, Canada, and Singapore have all issued formal warnings or imposed restrictions.
As regulatory pressure mounts, major hedge funds and institutional partners have begun distancing themselves from the platform, withdrawing capital and pausing collaborations. These developments have forced Binance to accelerate its compliance roadmap.
The Bigger Picture: Compliance Over Convenience
In a recent interview, Binance CEO Changpeng Zhao (CZ) acknowledged that regulatory alignment now takes precedence over day-to-day operations. “Right now, most of my attention is focused on ensuring we meet regulatory expectations,” he said. This shift signals a broader industry trend: cryptocurrency platforms can no longer operate in gray zones. Full compliance is becoming non-negotiable.
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Frequently Asked Questions (FAQ)
Q: Do I need to verify my Binance account if I already trade there?
Yes. Even existing users must complete Intermediate Verification to continue trading, depositing, or using advanced features. Without it, you’ll only be able to withdraw funds and close positions.
Q: How long does Binance verification take?
Most Intermediate Verifications are processed within minutes to 24 hours. Delays may occur if documents are unclear or require manual review.
Q: Is Binance shutting down?
No. While the platform faces regulatory challenges in certain regions, it continues to operate globally and is actively working to comply with local laws. The verification mandate is part of this effort.
Q: Can I still use Binance in restricted countries?
Users in jurisdictions where Binance is restricted may experience limited access or complete service withdrawal. Always check your local regulations and Binance’s official country list for updates.
Q: What documents are accepted for verification?
Binance accepts passports, national ID cards, and driver’s licenses. Ensure the document is valid, unexpired, and clearly legible when uploading.
Q: Why is KYC important for crypto exchanges?
KYC helps prevent fraud, money laundering, and illegal activities. It also protects legitimate users by securing the platform against bad actors and enhancing overall trust in the ecosystem.
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Final Thoughts: Adapt or Lose Access
The message from Binance is clear: verification is no longer optional—it's essential. As the crypto industry matures, exchanges are being held to traditional financial standards. Users who fail to adapt risk losing access to their assets and opportunities.
By enforcing universal Intermediate Verification, Binance aims to build a safer, more transparent trading environment while aligning with international regulatory expectations. Whether you're a casual investor or an active trader, completing your verification should be a top priority.
Staying compliant isn’t just about meeting rules—it’s about securing your future in the digital asset space. The time to act is now.