Binance Tightens Withdrawal Process, Unveils Tax Report Solution
Binance has encountered regulatory challenges in a number of countries, including the United Kingdom, in recent times. To implement the safe trading initiative, the exchange has announced a plan to decrease the maximum leverage ceiling to 20X as key component of its attempt to set things correctly. The implementation of Know-Your-Customer (KYC) rules, which has been a key area for international regulators, is the most recent phenomenon.
At the time of writing, Binance has rolled out a new daily withdrawal restriction of 0.06 BTC, which is about $2400. Users who haven’t yet fulfilled the entire account validation will be affected. The prior withdrawal restriction of 2 BTC each day, amounting to about $80,000, has been drastically reduced. The increased restriction will go into effect without any delay, and newbies with basic account authentication will be prompted to finish their KYC.
Binance will gradually implement the latest withdrawal restrictions to prevailing customers beginning August 4, as per the exchange’s CEO Changpeng Zhao. By the 23rd of August, the procedure should be fully operational. The withdrawal restriction will be reset every day at 00:00 AM, according to the statement. Additionally, people who complete the whole authentication process will be able to withdraw up to 100 BTC each day, valued $4 million. Binance will begin implementing a tax reporting mechanism on Wednesday as portion of its endeavor to fully meet regulatory requirements.
Users would be able to “track their crypto activities, transmit trade data to third-party suppliers, and get an instantaneous summary of their quick taxes due,” as per reports. “Binance does not recommend any specific third-party tax software. When choosing third-party tax solutions, please use your best judgment and/or seek your personal tax counsel based on your specific tax scenarios and needs.”
Following the exchange’s latest clampdowns, Zhao indicated that he is prepared to stand aside if a competent successor with regulatory experience arises. For the time being, the exchange has taken a number of steps, such as suspending trading of stocks in tokenized form and discontinuation of margin trading in pairs based on Euros, Australian Dollars, and British Pounds Sterling.The initiative indicates that the world’s largest crypto exchange by trade volume intends to engage with regulators.
“Binance is willing to work with authorities from across the globe to find the best approach to create a competitive playing arena – consumer rights is something we all care about. We aim to build a long-term ecosystem based on blockchain technology.”
We’re enhancing our KYC efforts to further our leadership in this area.
Daily withdrawal limits will be adjusted from 2 BTC to 0.06 BTC (roughly ~$2,000 USD) for accounts who have only passed Basic account verification.https://t.co/gdim6HdLhU
— CZ 🔶 Binance (@cz_binance) July 27, 2021