Binance squeezes users on verification

[Mpamaegbu]

I have been flabbergasted, really, since I got that Binance is pressing and squeezing its users for what now seems a compulsory verification exercise by reducing its daily withdrawal limit from 2BTC to 0.06BTC for non verified accounts. I don't know what to make of this headlong as this is obviously killing the anonymous thing Bitcoin and cryptocurrency should stand for. Did anyone else who hasn't upgraded verification beyond basic one get that message?

Will Binance lose client base now. Will BNB take the hit and crash while this is on? There are many speculations going on in my mind right now.

What do you think?



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[teosanru]

I have been flabbergasted, really, since I got that Binance is pressing and squeezing its users for what now seems a compulsory verification exercise by reducing its daily withdrawal limit from 2BTC to 0.06BTC for non verified accounts. I don't know what to make of this headlong as this is obviously killing the anonymous thing Bitcoin and cryptocurrency should stand for. Did anyone else who hasn't upgraded verification beyond basic one get that message?

Will Binance lose client base now. Will BNB take the hit and crash while this is on? There are many speculations going on in my mind right now.

What do you think?

This is a really bad news. The USP of Binance was 2 btc withdrawal limit. From the very start people started to move onto Binance only because of their enhanced withdrawal limit. A big drawdown from 2 BTC to 0.06 BTC which isn't even 2500$ based on current rates. Kucoin is a similar exchange based on lines of Binance, it still has 2 BTC limit therefore a lot of users will definitely shift towards this exchange. I don't know if there are regulatory concerns or what from the side of Binance that they thought of this.

[NeuroticFish]

I have been flabbergasted, really, since I got that Binance is pressing and squeezing its users for what now seems a compulsory verification exercise by reducing its daily withdrawal limit from 2BTC to 0.06BTC for non verified accounts.

It was not a surprise at all. It was clearly all about "when" never about "if" this is going to happen.
At first I thought that it's getting into effect immediately, but no, they were nice and gave about one week of notice. And frankly, whoever keeps more than 14 BTC on an exchange and doesn't expect to need KYC sooner or later is kind of "asking for it".

[Silberman]

I have been flabbergasted, really, since I got that Binance is pressing and squeezing its users for what now seems a compulsory verification exercise by reducing its daily withdrawal limit from 2BTC to 0.06BTC for non verified accounts. I don't know what to make of this headlong as this is obviously killing the anonymous thing Bitcoin and cryptocurrency should stand for. Did anyone else who hasn't upgraded verification beyond basic one get that message?

Will Binance lose client base now. Will BNB take the hit and crash while this is on? There are many speculations going on in my mind right now.

What do you think?

Governments all over the world have been pressing binance to put more strict KYC policies in place and it seems they have finally succeeded as binance is obviously giving up, will this affect binance and the binance coin? Of course it will, there are many people that are not going to accept this, so if you can get your coins out of the exchange as soon as possible, but do not worry binance competitors will see this and take advantage of it and will eventually gain a reputation similar to the one binance has right now, or you know you could always move to decentralized exchanges.

[WePiggy]

I predict a lot of outflow from binance and a lot of inflow to other exchanges like Huobi and Kucoin. Binance volume will go down as a result. Not sure about the BNB price, I doubt it will drop but it won't pump like it used to. BSC is quite good - apart from all the DeFi scams and Rug Pulls on this chain!

[Sterbens]

I haven't done any advanced verification, because the reasons for anonymity are strong for me. Although indirectly it is clear for the sake of maintaining much more secure security. Honestly, not all users will. What's more, those who are still trading below the 1 BTC range (including me who only traders can). That doesn't seem too mandatory for me to follow up to the next level of KYC.
Maybe if in the future for urgent reasons and indeed reach the withdrawal limit above 1, 2, or 3 BTC, I am certainly willing to do it all.

[Mpamaegbu]

so if you can get your coins out of the exchange as soon as possible, but do not worry binance competitors will see this and take advantage of it and will eventually gain a reputation similar to the one binance has right now, or you know you could always move to decentralized exchanges.

To even think that Binance had maintained a steady withdrawal fee of 0.00057BTC over the years for its Bitcoin withdrawal no matter what amount anyone is withdrawing is, for me, very ridiculous. In the current market price that amount is $22.84. It doesn't matter to CZ if one is even withdrawing less than $10 worth of Bitcoin.

[LoyceV]

reducing its daily withdrawal limit from 2BTC to 0.06BTC for non verified accounts.

I'm surprised this surprises people! If anything, I'm surprised it took this long. 2BTC is a lot of money at current prices, and even at 0.06BTC per day it's possible to exchange $800,000 per year unverified (plus $8000 per year in Bitcoin withdrawal fees)! That's a lot of money, and that's still only per account. Since it's unverified, it shouldn't be too hard to create a few more.
Authorities are cracking down on exchanges. I'm pretty sure Binance couldn't care less who you are, as long as they earn from you. But to be able to continue their services in many countries, they'll have to follow regulations. And again: $2000 or more per day is a lot of money to exchange anonymously!

this is obviously killing the anonymous thing Bitcoin and cryptocurrency should stand for.
~
Will BNB take the hit and crash while this is on?

BNB is a centrally controlled shitcoin, it's the opposite of what cryptocurrency stands for. I wouldn't touch it, even better: let it die!
Bitcoin is still as (pseudo) anonymous as it always was: if someone knows some of your transactions, they can make educated guesses from there.

From the very start people started to move onto Binance only because of their enhanced withdrawal limit. A big drawdown from 2 BTC to 0.06 BTC which isn't even 2500$ based on current rates.

For most people, $2500 is a lot of money, and I don't know many who exchange those amounts daily. My reason to use Binance was the good reviews I've seen, while many other exchanges have reports of (selective) scamming or other problems.
As an alternative, there are many anonymous instant exchanges, but I wouldn't trust them with a substantial amount.

[Gozie51]

Cryptocurrency is getting regulated by the day especially by exchanges like binance. Limiting of withdrawal from 2btc to 0.06btc daily for unverified accounts beyond base accoun verification is not such a good one. This is simply asking for KYC from binance and definitely is going to push investors who believe in total anonymity of the decentralised system.

[ScamViruS]

This is definitely a frustrating announcement for those users who are always aware of their anonymity and try to keep their personal information secure. Due to this new rule, those users who trade with a decent amount will suffer a lot. They will now try to find an alternative to binance. And for those who trade with small amount of funds, this withdrawal limit should not be a problem. Binance is trying to ensure that they comply with the rules and regulations of those countries in order to provide their services in all countries. So now it's time to think about why Dex should be given priority in the crypto community.

[FinneysTrueVision]

It is not a surprise at all. A few years ago there was a rumor that they wouldn't even allow unverified accounts to trade anymore. They didn't go that far but they stopped allowing people from the US. We have seen more pressure against Binance in the UK and in the US recently so it was just a matter of time before they started taking stricter measures.

[ven7net]

I have been flabbergasted, really, since I got that Binance is pressing and squeezing its users for what now seems a compulsory verification exercise by reducing its daily withdrawal limit from 2BTC to 0.06BTC for non verified accounts. I don't know what to make of this headlong as this is obviously killing the anonymous thing Bitcoin and cryptocurrency should stand for. Did anyone else who hasn't upgraded verification beyond basic one get that message?

Will Binance lose client base now. Will BNB take the hit and crash while this is on? There are many speculations going on in my mind right now.

What do you think?

You're right, it's really bad when crypto exchange platforms like Binance start requiring KYC to trade large amounts of money. That is why, although I am registered on Binance, I do not use this exchange. As for the negative impact on BNB, then Binance insured itself and created the DEX platform. So the outflow of clients can be expected, but I think not a fall in the price of BNB. But in any case, the more restrictions CEX exchanges put, the more people will look for alternatives.

[jackg]

I've been using the savings feature with some of my funds - until recently. I did get an email but it wasn't for that low (although I have only done email verification and 2fa). I think they've looked at the amounts I've withdrawn in the past and assumed they could take the risk and set it a bit higher.

There might be some people a bit more resistant to kyc too, I know most of the crypto exchanges do it a lot more rigerously than stock exchanges but less than banks - it's a bit disapointing they can't end up on par with stock exchanges by just doing address verification.

[teosanru]

From the very start people started to move onto Binance only because of their enhanced withdrawal limit. A big drawdown from 2 BTC to 0.06 BTC which isn't even 2500$ based on current rates.

For most people, $2500 is a lot of money, and I don't know many who exchange those amounts daily. My reason to use Binance was the good reviews I've seen, while many other exchanges have reports of (selective) scamming or other problems.
As an alternative, there are many anonymous instant exchanges, but I wouldn't trust them with a substantial amount.

I think trust is a very personal thing, once a new exchange starts picking up heat, users automatically get a sense of trust from an exchange, also I have seen most price manipulations and trading freezes from Binance as compared to any other exchange, even at the time of crash a couple of months bank, when BTC toppled from 38k to 29k, Binance was an exchange which was closed for a longer time as compared to other exchanges. One thing Binance is pretty good at is their marketing and inorganic expansions which have been a major pillar in their growth. If you see back in 2018, Bittrex was the most prominent platform, later most of the traders shifted to Binance due to better coins and larger withdrawal limit. Bittrex didn't do anything wrong or scammy but still couldn't catch up with the pace of Binance. But yes you are right up to some extent, as a not a lot of people switch easily until the whales will switch to any other exchange.

[cheezcarls]

I have been flabbergasted, really, since I got that Binance is pressing and squeezing its users for what now seems a compulsory verification exercise by reducing its daily withdrawal limit from 2BTC to 0.06BTC for non verified accounts. I don't know what to make of this headlong as this is obviously killing the anonymous thing Bitcoin and cryptocurrency should stand for. Did anyone else who hasn't upgraded verification beyond basic one get that message?

Will Binance lose client base now. Will BNB take the hit and crash while this is on? There are many speculations going on in my mind right now.

What do you think?

I'm an old user but didn't verify my account yet. I don't know if I'm counted because it states that only new users are affected if not verified. However, I do have plans to get fully verified by completing my KYC. As Binance is on the hot seat where countries like UK are doing a crackdown in their exchange. I think they are taking necessary steps slowly so that they would renegotiate with UK to reconsider them to operate in their country.

We have no choice but to comply if we want to increase our withdrawal limits.

[adzino]

People were complaining before that binance was forcing them to verify their identity even though they haven't reached their withdrawal limit or anything. They were being hit by "suspicious activity" excuse. We all knew this would happen sooner or later. They won't be able to allow users to withdraw large amount without verification due to "the government".

Will Binance lose client base now. Will BNB take the hit and crash while this is on? There are many speculations going on in my mind right now.

Who cares about this shitcoin?

[TimeTeller]

People were complaining before that binance was forcing them to verify their identity even though they haven't reached their withdrawal limit or anything. They were being hit by "suspicious activity" excuse. We all knew this would happen sooner or later. They won't be able to allow users to withdraw large amount without verification due to "the government".

Will Binance lose client base now. Will BNB take the hit and crash while this is on? There are many speculations going on in my mind right now.

Who cares about this shitcoin?

Do you really believe that BNB is a shitcoin?
As compared to other thousand alts, BNB is much much better as they have existing and active platform.
I believe, a lot will still use because not many users are really using those withdrawal limits.
If you want to stick with basic acct verification, just utilize their daily withdrawal limit.

[jackg]

what is there requirements for basic verification?
what is the next level of verification after the basic and what is the withdrawal capacity in btc for the higher level of verification?

Basic verification is just clicking a link in an email to confirm you own that email address. I think binance also make you add Google authenticator or a phone number before you can withdraw also.

The next step is full identity verification: name, ID, facial recognition.
Beyond that, there is then a more advanced step that requires address verification.

[Bttzed03]

~ Will Binance lose client base now.

Maybe a few users will leave. Binance is already at a stage where most of their users were probably verified. Late/New crypto traders are not the same as the early enthusiasts. They are after the money and not necessarily about privacy/anonymity.


I've been using the binance Dapp on Safepal.io mobile app for my trades with no identity verification required. I'm not sure if that will also affect the withdrawal limit but that's something you can also try.

[Wexnident]

Well at least they gave a buffer for those registered users already. Most big accounts that transact close to 1BTC daily would be verified already imo anw. The people who transact well over below that should be in the minority (like myself), though it's still a great number of users. I agree it was a matter of time though, 2BTC daily limit for basic users, most wouldn't even spend half of that for their daily withdrawals, what more 2. I'm still using Binance and from what I see the daily limit shouldn't impose me that much of an issue. At best, it'd force me to do my withdrawals in a span of a couple more days. There's always stable coins to store if you don't want volatility to hit you.