📰 Table Of Contents
Binance Urges Prime Brokers to Heighten KYC to Block U.S. Investors
Binance reportedly urged prime brokers like FalconX and Hidden Road to enhance their KYC processes to prevent U.S. investors from accessing its platform, according to a report by Bloomberg citing insider sources.
Prime Brokers and Their Role
Prime brokers serve as intermediaries between institutional investors and the market, offering services such as custody, trade execution, risk management, and lending.
Enhanced KYC Requirements
Binance has mandated prime brokers like FalconX and Hidden Road to gather comprehensive KYC information from clients, including the geographic locations of their offices, founders, and employees. Additionally, clients are required to have this information verified to ensure its accuracy.
Compliance and Transparency
A Binance spokesperson emphasized the exchange’s dedication to compliance and transparency in response to inquiries. By openly disclosing its standards for assessing end users who access its platform, Binance is looking to provide clarity to enterprises seeking access to its robust liquidity offerings.
Stricter Due Diligence Measures Implemented by Binance Following U.S. Settlement
The push for enhanced KYC procedures began around the time Binance pleaded guilty to charges brought by U.S. authorities. Since the plea, Binance has publicly disclosed its assessment criteria for end users accessing its platform.
Changes in Listing Requirements
Binance Holdings Ltd. has also tightened requirements for listing new digital tokens to bolster investor protections on its platform. Crypto projects seeking to list tokens on Binance now face a substantially longer “cliff period” during which no coins can be sold. They must also set aside more coins for market makers and make a security deposit.
Conclusion
Binance continues to maintain its position as the largest cryptocurrency exchange globally in terms of trading volume, according to data from CoinMarketCap.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
