As you might have guessed, after all the moves by governments towards Binance, the world’s largest crypto exchange has decided to listen to the powers that be and greatly reduce the daily withdrawal limits from WELL 2 BTC to only 0.06 BTC per day. If you don’t do a full KYC, sending all your documents to Binance, from now on you will only be able to withdraw about $2400, which is 30-35 times less than the usual $80,000.
As reported by crypto news portals, Binance, the world’s largest cryptocurrency exchange by trading volume, is continuing its efforts to maintain a dialogue with global regulators by introducing withdrawal limits and a new tax reporting system. On Tuesday, the company officially announced a significant update to its Know Your Customer policies, significantly reducing the maximum withdrawal amount for users who have not completed full identity verification.
Effective immediately for new Binance accounts, users who have only completed basic verification will not be able to withdraw more than 0.06 Bitcoin (BTC) per day, equivalent to approximately $2,400 at the time of writing. Previously, the maximum daily withdrawal limit corresponded to 2 BTC, or about $80,000, pointed out Binance CEO Changpeng Zhao on Twitter.
According to the announcement, Binance will continue to apply new withdrawal limits for existing users in phases starting on 4 August. The exchange expects to fully adopt the new withdrawal restrictions by 23 August. Binance users who have completed full identity verification will still be able to withdraw up to 100 BTC per day, or nearly $4 million based on the price of BTC at the time of writing. “Withdrawal limits will reset every day at 00:00 AM,” the announcement explains.
Furthermore, Binance introduced its new tax reporting tool on Wednesday. The reporting system is an API that allows Binance users to track their crypto transactions, transfer transaction history to third-party providers and get instant overviews of their local tax liabilities. The new initiative is part of the exchange’s broader strategy to improve user protection and risk management protocols. According to the instructions page for the new tool, users can select a tax reporting service provider to which they can transfer their transaction history. “Binance is not endorsing any particular third-party tax software. Please exercise discretion and/or consult a tax advisor about your individual tax circumstances and requirements before selecting a third-party tool,” the exchange warned.
This news emerges as Binance continues to aggressively adopt new trading restrictions in an attempt to respond to the ongoing global regulatory crackdown on the exchange. This week, the exchange delisted margin trading pairs for three fiat currencies (euro, Australian dollar and British pound). In addition, Binance’s futures trading platform has begun reducing its maximum leverage from 125x to 20x.
Things are getting tougher and tougher for centralized exchanges so it looks like it’s time to move all the assets to decentralized wallets, don’t you think?