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Beginning in August, existing Binance users will be unable to withdraw more than 0.06 BTC per day unless they complete full KYC verification.
Binance, the world’s largest cryptocurrency exchange by trading volume, maintains dialogue with global regulators by introducing withdrawal limits and a new tax reporting system.
The company officially announced Tuesday a major update to its Know Your Customer policies, significantly reducing maximum withdrawal amounts for users who have not completed full identity verification.
Users who have only completed basic account verifications for new Binance accounts will be unable to withdraw more than 0.06 Bitcoin (BTC) per day, which is approximately $2,400 at the time of writing. Previously, the maximum daily withdrawal amount was limited to 2 BTC, or approximately $80,000, according to Binance CEO Changpeng Zhao on Twitter.
Binance will continue to apply new withdrawal limits to existing users in phases beginning August 4, according to the announcement. The exchange expects to have fully implemented new withdrawal restrictions by August 23. Binance users who have completed full identity verification will be still able to withdraw up to 100 BTC in a day, or nearly $4 million at BTC prices at the time of writing. “Withdrawal limits refresh daily at 00:00 AM,” the announcement notes.
Binance also rolled out its new tax reporting tool on Wednesday. The reporting system is an Application Programming Interface that enables Binance users to track their crypto transactions, transfer their transaction history to third-party vendors, and obtain instant overviews of their local tax liabilities. The new initiative is part of the exchange’s broader strategy to expand user protection and risk management protocols.
Users can now choose a third-party tax tool to transfer their transaction history, according to Binance’s tax reporting instruction page. “Binance does not endorse any specific third-party tax tool software. When selecting third-party tax tools, “please use your own discretion and/or consult your personal tax adviser based on your personal tax circumstances and requirements,” the exchange cautioned.
Binance did not respond immediately to a request for information on how to use the new tool for Binance US users.
The announcement comes as Binance aggressively implements new trading restrictions in an apparent effort to respond to the exchange’s ongoing global regulatory crackdown. The exchange delisted margin trading pairs for three fiat currencies this week, including the euro, Australian dollar, and British pound sterling. The maximum leverage position on Binance’s futures trading platform has also been reduced from 125x to 20x.
Zhao also hinted on Tuesday that he would be willing to step down as CEO if someone with a “strong regulatory background” became available.