Binance squeezes users on verification

[Mpamaegbu]

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!

Well, I wouldn't get to the point of wanting BNB to be dead like a certain Bitcoinconnect coin and other worthless ones. For one, the popularity of the Binance smart chain (BSC) which woke ETH from its slumbers and gave it a run for its money rests on the workings of the Binance token (BNB) itself. I suspected the news would shake the token a bit. I quickly sold my BNB hodling yesterday, waiting for a dip. Though the news hasn't done any damage yet. I'm still waiting for that imminent fall before a rise.

Edited: thanks for the merits!

[jaberwock]

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?

From what I remember, basic verification is simply achieved by entering your personal details. No verification is needed at that point but that doesn't help your limits at all, at least from what I remember.

They need a selfie live done with a webcam or mobile camera to get you basic verification or intermediate verification which actually gets you higher limits. I can understand all the hate towards this approach from binance but as long as you are not doing anything illegal or evading taxes, you should be fine totally.

I am not supporting binance or this approach but I don't see a massive problem either.

[TheGreatPython]

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!

Yeah, I also think BNB won't be too impacted with this move but I won't blame Binance alone here because it is the persistent pressure from legal authorities to ask for documents and no matter how much Binance avoids and ducks, at some point, they had to give up and seems like they did eventually now.

By the way, if a big exchange like Binance has been forced to do something, I don't think users are safe with any centralized exchanges right now. In fact, it's time to spread awareness about decentralized exchanges and withdraw from centralized wallets/exchanges.

[Lakai01]

this may be binance applying the strategy to all members on binance for verification. because it seems like the binance incident was hacked to be one of the effects why binance has become stricter and binance wants to detect who the users on binance are

One must not forget here:

Binance is not doing this because they are bored. There is - especially in the EU - now a very strict set of rules to which companies must adhere if they want to offer their services in the EU and FIAT can be paid in or out -> thus affects all exchanges with European customers. One of these strict measures is KYC, i.e. no anonymous customers are allowed to be on the exchange.

[geegaw]

this may be binance applying the strategy to all members on binance for verification. because it seems like the binance incident was hacked to be one of the effects why binance has become stricter and binance wants to detect who the users on binance are

Perhaps so, when in the past, users who only needed to verify the basic steps were able to withdraw about 2 BTC per day, a pretty high number and now higher according to the current value of bitcoin, just think about information leakage as well as hacker attacks, exchange losses are already in record numbers, besides, quite a few countries are requiring some special regulations to control crypto users. Binance is a business and they are forced to match the guidelines of a country to create a reasonable deal

[Sanugarid]

this may be binance applying the strategy to all members on binance for verification. because it seems like the binance incident was hacked to be one of the effects why binance has become stricter and binance wants to detect who the users on binance are

The attack happened on their side I think so it's a bit impossible that the attack came from outside so I think making it stricter is a bit of a stupid move plus the amount to withdraw is a little bit too low for my taste so I don't think it's a really good thing that they upped the ante for their verification.

[mu_enrico]

The value is currently ~$2,400, so it's still a lot, and probably there will be more adjustment in the future for Lv.0 accounts. What I fear is that they will completely block withdrawal for non-KYC users. Almost all of exchanges now require at least basic KYC via filling some form. And I smell Binance will do it soon. Well, you can fill false info though but it will risk your account to be suspended.

[pawanjain]

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?

Bitcoin is pseudonymous and it stays in that nature even today. Crypto exchanges like Binance are centralized.
We can't do anything because it's their exchange and they can decide to include any rule or modify any existing feature immediately.
This does not mean it is changing the pseudonymous nature of bitcoin. Bitcoin is still pseudonymous.
This is why they say that we should never keep large amounts of our crypto on exchanges.

[tvplus006]

...Did anyone else who hasn't upgraded verification beyond basic one get that message? ..

I have not received such a message from the exchange due to the fact that I have long passed the extended verification. I passed it not in order to increase the daily withdrawal to 100 BTC per day, but solely in order to get the opportunity to participate in the launchpads held on Binance. For this reason, I was sure that most traders have Intermediate and Advanced verification on Binance.

[2double0]

Don't you think it has something related to their recent issues with some countries who went behind Binance for some legal reasons? Even one of their huge banking partners took off their support after that. May be Binance is trying to exit scam or is it to let the users feel the burden of verification because Binance was tortured for it?
Whatsoever is the reason, but I am also shocked how can they stop a person from withdrawing his own money if he is not verified there? It is dictatorship to me.

[Oilacris]

What do you think?

2 BTC withdrawal limit was imposed or make out when bitcoins price wasnt really that high at all and its just normal to make out some adjustment and its been so long that it did remain 2 BTC withdrawal limit per day
which in todays price it would really be that big.

0.6 adjustment is just right imho for most people and not all are whales who could make out 2 btc withdrawal per day.So i dont see this thing to be an issue after all and it wasnt really surprising.

These platforms are regulated and its just normal to have these kind of changes.I do even expect that they would mandatorily asking for full KYC in near future.

[nelson4lov]

~Snipped

I'm seeing a repeat of what happened with Bittrex in 2017-2018 ( psssttt, not sure of exact year) when they started forcing users to KYC and locking accounts that haven't gone through the exercise. This action alone forced people to move on to other alternatives and that's when Binance came along. The fact that Binance is suffering from stringent rules from regulators goes to show that no custodial exchange / service can put users interests as their top priority at all times.

Sad to see Binance taking the L on this one but I knew this day would come.

~Snipped
0.6 adjustment is just right imho for most people and not all are whales who could make out 2 btc withdrawal per day.So i dont see this thing to be an issue after all and it wasnt really surprising.

The reason why everyone is just pointing fingers at the current regulatory issues is because majority of their recent updates and even their recent 4th year anniversary was centered on regulation. It's no brainer to see them take steps like this after getting hit multiple times in a very short period of time by regulators.

[Questat]

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?

It will that really be going that way, they are getting closer to ask everyone to comply with KYC. I have this experience and forcing me to do that. I have no choice as my money is on their hands but since I trust this site, that is why I did. Because even you just have a small withdrawal still they are asking for the basic information. This might be for security reasons, we don't know but probably that was the issue and this will losing our goal to keep anonymous.

[AliMan]

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?
~snip~

This is really a serious situation that most traders were facing right now, and with 0.06 withdrawal was too small as a non verified amount. Also I got an speculations that this thing was really been seriously undertaking with some regulations with binance itself. On this certain implementation, I don't think traders will be happy about it because mostly keep their trading anonymous and won't bother verifying themselves just to keep their identity private.

[roosbit]

This was coming as crypto continues to become popular and knowing it works without boarders it was always going to be pressured to have some kind of regulations. We all know how much bitcoin has been named to be a currency for criminals and all other illegal activities but soon or cexs will have this and the crypto anonymous feature will be taken away from us.
And these adjustments by Binance will make it lose customers in the short term but with time it will grow again.

[Boov]

I'm glad to know upon checking my binance account, I already pass the verification unknowingly so in this news; let's consider my situation safe for the said announcement.
Only thing is I'm worried all about is the new users who's struggling to verify themselves due to privacy protection.
We can't force them to resist on this matter, but the maximum withdrawal was too low and we don't know if they're going to earn good on their trades. That would be the biggest problem for everyone who skip verification requirements.

[Yamifoud]

This was coming as crypto continues to become popular and knowing it works without boarders it was always going to be pressured to have some kind of regulations. We all know how much bitcoin has been named to be a currency for criminals and all other illegal activities but soon or cexs will have this and the crypto anonymous feature will be taken away from us.

KYC will give us an option neither we submit it or to decline using an exchanger but to go along with the P2P transactions(where I found risky rather than having KYC). If Binance will having this move, might be possible that the rest will follow as well. It looks like we are closely losing our anonymity in the market and for sure this has come to an end. I think we are closely moving similar to the banking system where we have to send and give our personal information.

And these adjustments by Binance will make it lose customers in the short term but with time it will grow again.

Well, that is what we take a look at after implementing this rule. But for sure many people, traders and investors will still use Binance as they are one of the trusted exchanges in the crypto space.

[adaseb]

What is Basic verification exactly? I had an old Binance account that I never did any verification and it was labelled something such as Unverified 0. I did withdraws in the past and didn't get any issues.

Looking at their videos, it seems that Basic verification is only your full name, birthdate and address, however do you need to send them any documents? Because it doesn't seem like its KYC if this is all you need to provide.

I didn't get any emails like the above user. And I am wondering what happens to Unverified accounts, will they also get the 0.06BTC or do they need to upgrade to Basic to get the 0.06 BTC?

[harizen]

Come to think of this. Are those big traders on Binance are not KYC verified? They are playing with big money and might be funding their accounts thru bank accounts (which requires KYC) so I don't think their accounts are just on the Basic Account tier so surely they are not affected at this new implementation of lowering the maximum amount to withdraw by Basic Accounts.

And besides, for small to mid traders, the daily withdrawal is still decent as it is. They can come back the other day for another round of withdrawals if they exceed their limits on which I doubt they really reach their limit every day. Still, way better compared to exchanges that require KYC for any amount. I don't see any reason why that should be a reason for Binance users to be declined.

I didn't get any emails like the above user. And I am wondering what happens to Unverified accounts, will they also get the 0.06BTC or do they need to upgrade to Basic to get the 0.06 BTC?

Unverified accounts = Basic Accounts

The next tier is Intermediate wherein documents are needed. If approved, up to BTC100 limit per day.

And the best thing here is, it just takes few minutes (1-2 minutes) to be approved and will not take several days. Maybe it's automatically approved once the documents were clear.

[stompix]

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.

I'm surprised they haven't lowered this to 0.01, or made it a fixed sum of 250-500$. Probably this is the first step, trying to make it look like they are takings some actions and they are simply giving time for all people who will never do KYC to get out of there before the mandatory verifications will be imposed on any sum.
The limit is still very high, although 2BTC was clearly set up at a different time when it didn't mean close to 100k a day unverified.

But, bottom line, whoever thinks that in one year they will be able to deal semi-anonymously on Binance they are fooling themselves, I'm pretty sure they will start implementing even bank verifications for wire transfers, they will drop a lot of payment options from the p2p marketplace. From my point of view, it's quite funny, I always laughed at how a lot of people were saying Binance will not bow down to regulations, they are so big they afford lawyers they afford bla bla bla, that no government can stop them, writing is on the wall, they will either submit or they will go down.

Binance is not doing this because they are bored. There is - especially in the EU - now a very strict set of rules to which companies must adhere if they want to offer their services in the EU and FIAT can be paid in or out -> thus affects all exchanges with European customers.

There is no new rule in the EU, the rules were the same 3 years ago but Binance choose to ignore them, they choose to operate without a license and they thought they could keep it like that forever, trying to weasel their way out by invoking every time some stupid arguments like being a global internet company with no headquarters or other crap like that.