How KYC Helps Keep Users Safe in the UK
When it comes to regulatory and compliance requirements, Binance takes its role very seriously. Apart from just meeting our legal obligations, KYC (Know Your Customer) or otherwise known as Identity Verification, also ensures our users are as safe and secure as possible. Very importantly, it helps us to keep bad actors away. Current and new Binance users in the UK will need to complete a new KYC flow by Q1 2022 to continue using Binance.
Main Takeaways:
Binance users in the UK will be notified that they have 14 days to complete the new KYC flow, even if they’ve already completed KYC previously.
New KYC requirements will include advanced Identity Document verification, Address Verification, and ‘Liveness’ Checks.
These upgrades will make Binance the first crypto exchange to be fully compliant with both 5AMLD and 6AMLD (Anti-Money Laundering Directive) requirements.
Regulatory compliance frameworks change over time, adapting to new technological innovations in order to better protect consumers. Governments, businesses, and financial authorities work closely together to improve the processes that keep you safe. For any of our customers in the UK, this means you’ll be notified that you need to complete updated Know Your Customer (KYC) checks.
This may feel like a hassle but the payoffs from doing it are large, compared to the time that you will need to spend on it. Apart from just keeping you and your funds secure, you’ll also get a little something extra from Binance: an exclusive Binance KYC Mystery Box and the possibility of even more rewards down the line.
Why Is KYC (Know Your Customer) Important?
Put simply, KYC makes sure that we know who our customers genuinely are. This, in turn, has benefits for you, Binance, and the cryptocurrency industry as a whole. To begin, KYC helps to:
1. Detect Money Laundering and deter it from occurring
Oftentimes, criminals use Cryptocurrencies to launder illicit money. By verifying a customer’s details, Binance can trace suspicious activity and confirm the source of these funds. Having KYC checks in place also deters laundering from taking place on Binance. Both these facts help keep users and society safe from activities funded by laundered money.
2. Combat Financial Fraud and Identity Theft
KYC helps confirm the person opening an account is exactly who they say they are. Identity theft and fraud affect millions of people worldwide, and KYC is a direct way to fight them. Better KYC procedures mean that your funds are even safer.
3. Improves the Industry’s Trust and Accountability
The cryptocurrency industry is still a young one. While it’s gone a long way in building up a strong reputation, there’s still more work to be done. Eagerly meeting our regulatory and compliance requirements creates a greater sense of trust for the whole cryptocurrency ecosystem.
Why Has the KYC Flow Changed?
We’re upgrading our KYC flow for the UK to better meet our compliance commitments and regulatory expectations and ensure our latest technological standards are up to date. These upgrades will make Binance the first crypto exchange to be fully compliant with both 5AMLD and 6AMLD (Anti-Money Laundering Directive) requirements.
To achieve all this, Binance uses fully-digitised and automated identity verification processes that implement modern AI algorithms. As the largest and leading cryptocurrency exchange in the industry, upgrading our KYC is a priority we take seriously.