BINANCE RESTRICTS UNVERIFIED SUB-ACCOUNTS ON EXCHANGE LINK PROGRAM

Last updated: June 20, 2025, 00:13 | Written by: Barry Silbert

The world of cryptocurrency is constantly evolving, and with it, so do the regulations and compliance requirements set by leading exchanges. Sub-accounts without the necessary KYC information will be fully restricted by May 20. source:Recently, Binance, one of the largest and most influential cryptocurrency exchanges globally, announced significant changes to its Exchange Link Program.This update centers around mandatory Know Your Customer (KYC) requirements for all Exchange Link account holders, impacting a substantial number of users.This move reflects a broader industry trend toward increased regulatory scrutiny and a commitment to combating illicit activities within the digital asset space.As of April 5th, Binance began restricting access to sub-accounts for those who hadn't completed the necessary KYC verification, with full restrictions taking effect on May 20th.This article will delve into the details of this policy change, exploring its implications, the reasons behind it, and what users need to do to ensure continued access to Binance's services. Binance, a leading cryptocurrency exchange, has introduced mandatory Know Your Customer (KYC) requirements for its Exchange Link account holders through the Binance Link Program. As of April 5, only verified and compliant users will retain access to their sub-accounts within the program.Understanding these changes is crucial for anyone participating in the Binance Link Program, whether as a master account holder or a sub-account user.This guide aims to provide a comprehensive overview, ensuring you're well-informed and prepared for the evolving landscape of crypto exchange compliance.

Understanding the Binance Link Program and Sub-Accounts

Before diving into the specifics of the KYC restrictions, it’s crucial to understand the core functionality of the Binance Link Program.Essentially, this program allows businesses and individuals to leverage Binance's infrastructure to offer cryptocurrency trading services to their own users. The exchange noted that only users who have complied with the directive will be allowed to access their accounts. Binance set to restrict sub-accounts without KYC. The announcement also mentioned that the exchange has been taking action against unverified users since March 20. Notably, Binance has also issued an ultimatum against the affectedThese partners, referred to as Exchange Link account holders, can create sub-accounts under their master account, allowing their clients to access Binance’s robust trading platform.

Sub-accounts provide several advantages, including:

Simplified Onboarding: Partners can easily onboard their users onto the Binance platform through sub-accounts.
Customized User Experience: Sub-accounts can be tailored to specific user needs and preferences.
Access to Binance's Liquidity: Sub-accounts benefit from Binance's deep liquidity, ensuring efficient order execution.
Centralized Management: Master account holders can manage all their sub-accounts from a single interface.

However, with these advantages comes the responsibility to comply with Binance’s policies and regulations.This leads us to the recent changes regarding KYC verification.

The New KYC Requirements: A Closer Look

The core of the recent announcement is the mandatory KYC verification for all sub-account users within the Binance Link Program.This means that both the master account holder and the users of the sub-accounts need to complete the required verification process to maintain access to Binance’s services.This isn’t just a suggestion; it's a strict requirement.

What Does KYC Entail?

KYC, or Know Your Customer, is a standard process used by financial institutions, including cryptocurrency exchanges, to verify the identity of their users. Binance tightens KYC requirements for sub-accounts, imposing restrictions and emphasizing direct communication with Exchange Link account holders.This typically involves providing the following:

Personal Information: Full name, date of birth, address, and other identifying details.
Government-Issued Identification: A copy of a passport, driver's license, or national ID card.
Proof of Address: A utility bill, bank statement, or other document that verifies the user's address.
Source of Funds (in some cases): Information about where the user's funds originated.

The specific requirements may vary depending on the user's location and the level of access they require.Binance uses a tiered verification system, with higher levels requiring more detailed information.

Why is Binance Implementing These Changes?

Several factors contribute to Binance's decision to implement these stricter KYC requirements:

Regulatory Compliance: Cryptocurrency exchanges are increasingly facing pressure from regulators around the world to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.KYC is a crucial component of these regulations.
Enhanced Security: By verifying the identity of its users, Binance can better detect and prevent fraudulent activities, such as account takeovers and identity theft.
Combating Illicit Activities: KYC helps to prevent the use of the platform for illicit activities, such as money laundering and terrorist financing.
Maintaining a Secure Ecosystem: A more secure and compliant platform benefits all users by fostering a trustworthy and transparent environment.

In essence, Binance is taking proactive steps to ensure its platform remains compliant with evolving regulations and to protect its users from potential risks.

The Timeline of Restrictions and Their Impact

Binance implemented the KYC restrictions in stages, providing users with a timeframe to complete the necessary verification process. Cryptocurrency exchange Binance has announced measures that will be taken against users with accounts on its Exchange Link program. According to the announcement, Binance has mandated users of sub-accounts to ensure prompt completion of their mandatory Know Your Customer (KYC).Understanding this timeline is crucial for understanding the implications.

March 20th: Binance began taking action against unverified users, initiating the process of restricting access to certain features.
April 5th: Access to sub-accounts was restricted to only verified and compliant users. Restricted accounts cannot place new orders in futures and margin trading but can reduce their positions. Binance Coin (BNB) $ 376.14 5.52%; XRP (XRP) $ 0.This marked the beginning of the formal enforcement of the new policy.
April 20th: Unverified users without the required KYC information began to lose access to their sub-accounts created as part of the Binance Link program. Vitalik Buterin proposes swapping EVM language for RISC-V. ApThis included sub-accounts created solely for depositing cryptocurrencies.
May 20th: Sub-accounts without the necessary KYC information faced full restrictions.

What Happens If You Don't Comply?

The consequences of failing to comply with the KYC requirements are significant.Unverified sub-account holders experienced a progressive restriction of access to Binance services, culminating in a complete loss of access.Specifically, the restrictions included:

Inability to Deposit: Users couldn't deposit any new funds into their sub-accounts.
No New Orders: Placing new buy or sell orders was prohibited.
Trading Restrictions: Access to trading functionalities was completely blocked.
Limited Position Reduction: While restricted accounts couldn't place new orders in futures and margin trading, they could still reduce their existing positions.
Complete Account Restriction: By May 20th, unverified accounts were fully restricted and unable to access any services within the Binance Link Program.

This means that if you are a master account holder with unverified sub-accounts, your clients would have lost access to their funds and the ability to trade.It’s a critical situation that demanded immediate action.

Actionable Steps for Exchange Link Account Holders

If you are an Exchange Link account holder, it’s imperative that you understand the actions you need to take to ensure your sub-accounts remain active and compliant. Starting from April 5, the exchange will grant access to sub-accounts only to users who have completed the verification process and are in compliance with the new guidelines. This policy extends to sub-accounts created solely for deposit purposes, even if they are not used for trading activitiesHere's a breakdown of the necessary steps:

Communicate with Your Sub-Account Users: The first and most crucial step is to communicate clearly and promptly with all your sub-account users.Inform them of the new KYC requirements and the consequences of non-compliance.Explain the deadline for completing the verification process.
Provide Guidance and Support: Offer assistance to your users throughout the KYC verification process.Provide clear instructions on how to complete the verification process and address any questions or concerns they may have.
Utilize the Link-KYC Module: The updated policy requires Exchange Link account holders to integrate with the Link-KYC module. Starting from Apr. 20, unverified users without the required KYC information will no longer have access to their sub-accounts that were created as part of the Binance Link program. This measure will also affect the sub-accounts that were created only for depositing cryptocurrencies.This module allows you to provide detailed information on behalf of your sub-account holders. Binance has announced plans to restrict sub-accounts without the necessary KYC information under the Binance Link Program.Ensure you understand how to use this module effectively.
Monitor the Verification Status: Regularly monitor the verification status of your sub-accounts.Identify any users who have not yet completed the process and follow up with them to encourage compliance.
Ensure Compliance with Binance's Requirements: Carefully review Binance's KYC requirements to ensure that you and your sub-account users are providing all the necessary information. Binance restricts unverified sub-accounts on Exchange Link program Sub-accounts without the necessary KYC information will be fully restricted by May 20. 31 Total views Listen to article 0:00 News Own this piece of crypto history Collect this article as NFT Crypto exchange Binance announced mandatory Know Your Customer (KYC) requirements for its Exchange Link account [ ]Stay updated on any changes or updates to the requirements.
Contact Binance Support: If you encounter any difficulties or have questions about the KYC process, don't hesitate to contact Binance support for assistance. Crypto exchange Binance announced mandatory Know Your Customer (KYC) requirements for its Exchange Link account holders under the Binance Link Program. On April 5, Binance saidThey can provide guidance and help resolve any issues you may face.

By taking these steps, you can minimize the disruption to your business and ensure that your sub-account users maintain access to Binance's services.

Practical Examples and Scenarios

To further illustrate the impact of these changes, let's consider a few practical examples:

Scenario 1: A Trading Firm with Multiple Sub-Accounts

Imagine a trading firm that uses the Binance Link Program to provide trading services to its clients.The firm has created numerous sub-accounts for its clients, each with its own trading strategy and risk profile.If some of these clients fail to complete the KYC verification process by the deadline, their sub-accounts would be restricted, preventing them from executing trades and potentially incurring significant losses. Starting, unverified sub-account holders will experience complete access restrictions and lose access to services provided by the Binance Link Program. Additionally, the updated policy requires Exchange Link account holders to integrate with the Link-KYC module by providing detailed information on behalf of their sub-account holders.The trading firm would need to actively manage the KYC status of its clients and provide support to ensure compliance.

Scenario 2: A Crypto Brokerage Service

A crypto brokerage service uses the Binance Link Program to offer its clients access to Binance's liquidity. Binance tightens KYC requirements for sub-accounts, effective April 20. Unverified users under Binance Link program lose access without complete KYC info. Restrictions include deposit, new orders, and trading functionalities.The brokerage service has many clients who use sub-accounts to trade cryptocurrencies.If the brokerage service doesn't inform its clients about the new KYC requirements and doesn't provide adequate support, many clients might miss the deadline and lose access to their sub-accounts. Crypto exchange Binance announced mandatory Know Your Customer (KYC) requirements for its Exchange Link account holders under the Binance Link Program. On April 5, Binance said that only verified and compliant users will be given access to their sub-accounts.This could damage the brokerage service's reputation and lead to a loss of clients.

Scenario 3: A Deposit-Only Sub-Account User

Even users who only use their sub-accounts for depositing cryptocurrencies are affected.Imagine someone who uses a Binance sub-account solely to receive payments in crypto.If they didn't complete KYC, they would have been unable to receive further deposits after the deadline, effectively halting their ability to use that sub-account for its intended purpose.

Addressing Common Questions and Concerns

The new KYC requirements have raised several questions and concerns among Binance Link Program users.Let's address some of the most common ones:

Q: What if my sub-account users are located in different countries?

A: The KYC requirements apply to all sub-account users, regardless of their location.Binance may have different KYC requirements for users in different countries, so it's important to ensure that your users comply with the specific requirements for their jurisdiction.

Q: Can I complete the KYC verification process on behalf of my sub-account users?

A: No, individual users need to complete the KYC process themselves.However, Exchange Link account holders are required to integrate with the Link-KYC module, which allows them to provide detailed information on behalf of their sub-account holders and manage the overall verification process.You are essentially responsible for facilitating the process for your users.

Q: What happens to the funds in restricted sub-accounts?

A: While restricted sub-accounts can't deposit new funds or place new orders, users could initially reduce their existing positions.Ultimately, users need to complete KYC to regain full access and manage their funds.Binance will likely provide guidance on how to withdraw funds from restricted accounts after KYC is completed, but it is crucial to stay updated on their specific policies and procedures.

Q: Is Binance the only exchange doing this?

A: No, Binance is not alone.Many cryptocurrency exchanges are implementing stricter KYC requirements due to increased regulatory scrutiny.This is a broader trend in the industry as exchanges strive to comply with AML and CTF regulations.

Q: What if a user refuses to complete KYC?

A: If a user refuses to complete KYC, their sub-account will be restricted, and they will lose access to Binance's services.There's unfortunately no workaround for this.The user needs to understand that compliance is essential for continued access.

The Future of Compliance in Cryptocurrency Exchanges

Binance's move to restrict unverified sub-accounts on its Exchange Link Program highlights a growing trend in the cryptocurrency industry: increased emphasis on compliance and regulatory scrutiny.As the industry matures, regulators around the world are stepping up their efforts to oversee cryptocurrency exchanges and ensure they comply with AML and CTF regulations.

This trend is likely to continue in the future, with exchanges facing even greater pressure to implement robust KYC procedures and to monitor transactions for suspicious activity.The days of anonymous cryptocurrency trading are numbered, as regulators seek to bring the industry into the mainstream financial system.

For users, this means that KYC verification is becoming an increasingly common requirement for accessing cryptocurrency exchanges and other services.While some users may be resistant to providing personal information, it's important to understand that KYC is necessary for maintaining a safe and compliant cryptocurrency ecosystem.Exchanges implement these measures not just because they are legally obligated, but also because they genuinely help protect users.

Conclusion: Embracing Compliance for a Sustainable Future

The recent changes to the Binance Link Program, specifically the mandatory KYC requirements for sub-accounts, are a clear indication of the direction the cryptocurrency industry is heading.While these changes may present challenges for some users, they are ultimately necessary for creating a more secure, compliant, and sustainable ecosystem.The phrase 'Binance restricts unverified sub-accounts on Exchange Link program' is more than just a headline; it’s a call to action.

By embracing compliance and working with regulators, cryptocurrency exchanges can foster greater trust and confidence in the industry, paving the way for wider adoption and mainstream acceptance.As an Exchange Link account holder, proactive communication and guidance to your users are paramount.Ensure they understand the importance of KYC and provide the necessary support for them to complete the verification process successfully.

Key Takeaways:

KYC is now mandatory for all Binance Link Program sub-accounts.
Unverified accounts face restrictions, including deposit and trading limitations.
Exchange Link account holders must integrate with the Link-KYC module.
Compliance is crucial for a secure and sustainable crypto ecosystem.

The future of cryptocurrency depends on building a robust and compliant foundation.By adapting to these changes, we can collectively contribute to a more trusted and accessible digital asset landscape.