Updated: Aug 21, 2021
Yet again, Binance sends waves through the crypto community, removing individuals from accessing their portfolios.
The exchange was in the news recently, as many departments began taking legal action around the globe towards the service provider, and issuing warnings regarding the exchanges operations. As early as two weeks ago, after realizing law makers are making moves too, Binance drastically reduced their margin limits for traders down to just 20% without KYC approval, in an attempt to create the image they are focused on user security. Today, Binance has made instant changes to their platform that forbids all users from withdrawing any funds unless they provide some level of KYC to them. Binance users received no advance warning of this change, causing many, who don't even possess identification using the platform, to completely lose access to the funds in their account. This has caused financial hardship on a large amount of investors from third world countries, already facing financial challenges. Binance abruptly posted on twitter :
These new actions come as no surprise to many veterans in the space, who actively avoid utilizing the services provided by Binance, and have been posting warnings to remove funds ahead of this event coming to light. Time and time again, this exchange has shown it will never act within the interests of its users, but rather solely in the interests of themselves and their investors, to protect themselves from the increasing laws and regulations.
Regulators and prosecutors are closing in on Binance. We don't believe any level of changes they enforce will save them from the ultimate fate of securities fraud and market manipulation. Quickly after making the announcement, as per the usual, binance went on to post other totally non related announcements around the same time, seemingly in an attempt to shadow over the announcement. Digital Currency Daily will keep you updated as new information develops.