Binance's 'Un-Ethical' changes.

[2double0]

Since I started trading crypto, I used bittrex or poloniex as they were the only exchanges which held top notch security and too much volume with liquidity (according to my thinking from that time). But when I started my experience with Binance, it was phenomenal from the start. Their pairs, their 'no-kyc-required' attitude, their quick deposits and withdrawals (still on) and many other reasons helped me make my mind that Binance is going to be the number one app for crypto trading.

But nowadays, Binance has started tightening everything for its users. I tried to transfer some money from spot to margin and it showed that I must uncheck some pairs in order to transfer and trade in other pair. I had 27 total pairs selected but I was asked to uncheck 18 of them to be eligible to trade that 1 pair I was looking for. There was a catch that I must wait 24 hours before any of my 'unchecked' pairs is allowed to trade. Max 10 pairs allowed.
Kyc made mandatory.
I am sure there are lots of users are not liking this change, but do you agree that Binance is being masterful by doing all this?

[JeromeTash]

If you are using a centralized exchange and don't expect them to update their terms and conditions at one point in time then you haven't been following events in the crypto space attentively.

The u turn from no KYC to full KYC verification before trading on Binance was expected. It was just a matter of time. I am surprised you took this long to realize this once they announced that they were making changes a few months ago.

[Hispo]

Centralized exchanges are the first thing the governments around the world have forced to tighten their policies to meet the laws against money laundering, even though, we all know where most of the money laundering takes place.

Binance being the biggest player and representative when comes to centralized exchanges, they have become target number one to the politicians and lawmakers. Binance is a company and don't want to lose its hegemony over the crypto space and the market share, so they sacrifice their once-laxed policies to favor those who have the power to put to an end to their position.

[mk4]

Requiring strict KYC measures isn't always because of exchanges being shady or unethical. Sometimes, they simply require KYC because of governmental pressure. It's pretty much choosing between them needing to require stricter KYC measures, or not requiring stricter KYC measures but they get shut down by the authorities. I think the answer is obvious if you're the business owner.

[crwth]

It's not unethical IMO. It's ethical since they are just following regulations depending on where you are from. They are following rules so that they can stay at the top and continue to operate. It's not going to be successful as it is today if they do not do these types of requirements for their users.

As for the pairs in the exchange, I think they are making the users comply more and be strict because many people are losing money to those markets. Especially futures and margin markets.

[Charles-Tim]

I tried to transfer some money from spot to margin and it showed that I must uncheck some pairs in order to transfer and trade in other pair.

The amount of coins listed on future trading is limited and not many, but you can just first check if the coin you want to leverage is in future contract, instead of making use of margin, you can leverage it in future trading. But it will be good to just not increase the leverage and stick to the leverage that works for you in margin trading because the more the leverage the higher the risk of losing as I believe you know that already.

Kyc made mandatory.

Binance is centralized and want to obey international governmental rules and regulations, that is why kyc will help the exchange to avoid legal government restrictions in some countries.

You can still go for decentralized exchanges like Bisq for privacy. For day trading, there are still reputed exchanges like OkEx that still makes kyc not mandatory in some cases. But centralized exchanges will always be centralized exchanges, do not see it surprising if other centralized exchanges are also mandating kyc sooner or later.

[leea-1334]

I remember the days of Poloniex, so popular they could not even answer support anymore after a while,,, you could even loan out crypto there to earn instant even hourly interest. Those were the days.

Binance was also very good yes because of high limit and no KYC. But you know they have no choice now,,, Europe push them out because of that policy and now they have to comply or lose business. It is not about being masterful anymore but about survival.

[mk4]

Binance was also very good yes because of high limit and no KYC. But you know they have no choice now,,, Europe push them out because of that policy and now they have to comply or lose business. It is not about being masterful anymore but about survival.

They're actually requiring mandatory KYC now. Emails have already been rolling out that accounts will be set to withdraw-only to those users who haven't submitted KYC information on the 15th.

[Charles-Tim]

They're actually requiring mandatory KYC now. Emails have already been rolling out that accounts will be set to withdraw-only to those users who haven't submitted KYC information on the 15th.

I have a Binance account that has been restricted to withdraw only, this should be three days ago. Not only email, I did not remember if I got an email, but likely. But what I remembered very well was that they always display an annoying notification on spot and future trading page on their platform about the kyc of a thing, and it is every 12:00 am of a new day, that account can be restricted anytime while 19th is the deadline for all Binance users.

[PrimeNumber7]

The u turn from no KYC to full KYC verification before trading on Binance was expected. It was just a matter of time. I am surprised you took this long to realize this once they announced that they were making changes a few months ago.

I expect all major exchanges to require KYC in the near future. Bitcoin and crypto trading has become too big of a business for government regulators to ignore. An exchange that doesn’t require KYC is going to attract a lot of negative attention from the governments, which will inevitably lead to bad outcomes.

If you want to trade without KYC, you will most likely need to use some kind of DEX. I can see more coins adopting SW so they can be traded on a LN based DEX.

[Potato Chips]

The conflict usually starts on how exchanges transition to mandatory KYC. If we look at bittrex and poloniex, both of them are hated not because they did mandatory KYC but because they did not notify and gave an ample time before locking unverified accounts. Poloniex even took back their you will be able to withdraw before the deadline promise

So far binance is doing a better job (take note of so far). I wish they cleared up what would happen to their previous announcement about .06BTC limit and did not roll out the withdraw only for existing accounts in phases/by batch cause it only brought the big confusion. Still tolerable so it's okay ig.

[Darker45]

The tightening initiatives of Binance just recently are not really an issue of ethics. There is nothing ethical or unethical of their policies of late. In the first place, there is actually no intention from Binance's end to give their customers a hard time. I guess, had they been given enough freedom, they would have kept their old policies rather than impose stricter ones. However, Binance has not much choice. They have to operate within the bounds of law. As a matter of fact, on the contrary, it would be more unethical of them if they chose to disregard the law and operate solely on their own terms.

[leea-1334]

Binance was also very good yes because of high limit and no KYC. But you know they have no choice now,,, Europe push them out because of that policy and now they have to comply or lose business. It is not about being masterful anymore but about survival.

They're actually requiring mandatory KYC now. Emails have already been rolling out that accounts will be set to withdraw-only to those users who haven't submitted KYC information on the 15th.

Yes,,, I was explaining how it was in the past but mandatory is the only way for them to survive now. Binance knows it is losing customers like this,,, but they also know if they want to gain more customers and operate properly in Europe again they have to do this.

What always made me curious is why they left Africa when KYC there is not mandatory.

[hugeblack]

You should read the use condition well and follow the changes, as imposing KYC means that the platform will deal with the regulatory authorities and therefore there will be more strictness in opening matters and making profits with high financial leverage.

Binance is one of the few platforms that has imposed KYC because the regulators pushed them to do so and not to scam users, so it is natural to witness that many old things will change and differ depending on the country you are connected to.

you can try other exchange for non-KYC spot market.

[mk4]

Yes,,, I was explaining how it was in the past but mandatory is the only way for them to survive now. Binance knows it is losing customers like this,,, but they also know if they want to gain more customers and operate properly in Europe again they have to do this.

What always made me curious is why they left Africa when KYC there is not mandatory.

More like they just want to get the authorities out of their asses. Being registered in the Cayman Islands do help a lot escape regulatory pressure, but based on how exchanges in general have been acting recently, it's only a temporary and definitely not a fix-all solution.

[Kyraishi]

Well, unfortunately there is nothing you can do.

You are electing to use their services and if you don't like it, just move away from them.

Unfortunately regulations are only going to tighten from this point on. There are going to be no centralized exchanges that will ever get as big as Binance did and maintain no KYC going into the futrue.

[leea-1334]

Yes,,, I was explaining how it was in the past but mandatory is the only way for them to survive now. Binance knows it is losing customers like this,,, but they also know if they want to gain more customers and operate properly in Europe again they have to do this.

What always made me curious is why they left Africa when KYC there is not mandatory.

More like they just want to get the authorities out of their asses. Being registered in the Cayman Islands do help a lot escape regulatory pressure, but based on how exchanges in general have been acting recently, it's only a temporary and definitely not a fix-all solution.

The exchanges still left in Africa are no precisely more compliant with authorities than Binance though and all of this exiting from Africa actually happened before all this news about the being closed out in Europe,,, although perhaps there were silent challenges that we as the ex-Africa audience are not able to read. Just like how we do not know 100% of what goes on in China.

Also all these offshore places are being clamped down by the world authorities so much so in future now to do business anywhere having a registration in a place like Cayman Islands will exclude you from licenses.