Binance Urges Prime Brokers to Enhance KYC to Avoid U.S. Investors – Cryptonews
Last updated: March 19, 2024 17:12 EDT | 2 min read
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 March 19 report by Bloombergciting insider sources.
The ongoing presence of U.S. nationals on the platform has been a contentious issue for authorities, as officially, they are banned.
Prime brokers serve as intermediaries between institutional investors and the market, offering services such as custody, trade execution, risk management, and lending.
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.
A Binance spokesperson emphasized the exchanges 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, they said.
Recent court documents revealed that Binances rapid growth was largely driven by U.S. customers, despite the exchanges lack of registration as a U.S. business, however.
Former CEO Changpeng CZ Zhao and other officials were found to have encouraged high-value U.S. clients to obscure their connections to the U.S. using methods such as VPNs and APIs to access the exchange, according to reports.
The Justice Department also mentioned that Binance employees actively contacted VIP clients in the United States, urging them to provide information indicating that they were not situated within the United States.
The push for enhanced KYC procedures began around the time Binance pleaded guilty to charges brought by U.S. authorities in November. Since the plea, Binance has publicly disclosed its assessment criteria for end users accessing its platform.
In November, Binance and its former CEO, Changpeng Zhao, admitted to violating the Bank Secrecy Act and agreed to a $4.3 billion settlement with the U.S. Department of Justice. The settlement addressed allegations of money laundering, fraud, and sanctions violations stemming from Binances targeting of U.S. customers while failing to comply with U.S. regulations.
Zhao stepped down as CEO as part of the plea deal, with Richard Teng taking over to rebuild the exchanges reputation and market share, especially in the U.S. Following the guilty plea and subsequent enforcement actions, the exchanges U.S. arm had to downsize, cutting over two-thirds of its staff due to a decline in revenue.
Binance Holdings Ltd. has also tightened requirements for listing new digital tokens to bolster investor protections on its platform.
According to Bloomberg, 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. These changes began taking effect late last year.
Binance is fully committed to compliance and has made public how it assesses end users who can access the Binance platform, Binance said in response to inquiries regarding stricter checks by prime brokers. By making its standard transparent, Binance clarifies for enterprises who want to access its market-leading liquidity.
Binance continues to maintain its position as the largest cryptocurrency exchange globally in terms of trading volume,according to data from CoinMarketCap.
Follow this link:
Binance Urges Prime Brokers to Enhance KYC to Avoid U.S. Investors - Cryptonews
- Binance integrates Circle's yield-bearing USYC asset in latest partnership between the crypto giants - The Block - July 24th, 2025 [July 24th, 2025]
- Calling the Unthinkable: Why a Bitcoin Drop May Be Coming for BINANCE:BTCUSDT by Monstralian - TradingView - July 24th, 2025 [July 24th, 2025]
- Ethereum News Today: Binance and OKX Users Diverge in Bitcoin and Ethereum Strategies as Price Realizations Highlight Institutional vs Retail Risk... - July 24th, 2025 [July 24th, 2025]
- Binance Integrates Tokenized Yield Assets USYC and cUSDO for Institutions - Crypto Economy - July 24th, 2025 [July 24th, 2025]
- Participate in the Exclusive Bitlayer (BTR) Booster Program and Pre-Token Generation Event (Pre-TGE) on Binance Wallet - Binance - July 24th, 2025 [July 24th, 2025]
- Join the Discord AMA to Celebrate Binance 8YA & Win Rewards - Binance - July 24th, 2025 [July 24th, 2025]
- Binance Expands Institutional Collateral Options with Tokenized RWAs USYC and cUSDO Boosting Capital Efficiency - AInvest - July 24th, 2025 [July 24th, 2025]
- Binance Coin Leads Trending Crypto Discussions as Altcoin Momentum Heats Up - CryptoDnes.bg - July 24th, 2025 [July 24th, 2025]
- Altcoin Momentum Builds as Bitcoin Stabilises and Binance Dominates Trading Activity - Cointribune - July 24th, 2025 [July 24th, 2025]
- Binance Partners With Circle to Enable Institutional USYC Collateral in Derivatives Trading - AInvest - July 24th, 2025 [July 24th, 2025]
- Circle Binance Partnership Enables Yield-Bearing USYC as Institutional Derivatives Collateral - AInvest - July 24th, 2025 [July 24th, 2025]
- Binance to Accept Circles Yield-Bearing Stablecoin USYC as Institutional Collateral - Cryptonews - July 24th, 2025 [July 24th, 2025]
- Circle and Binance Push Stablecoin Innovation with USYC - CoinCentral - July 24th, 2025 [July 24th, 2025]
- Ethereum News Today: Binance and OKX Users Diverge: Bitcoin Realized Price at $45K vs $97K as Ethereum Whales Secure Profits - AInvest - July 24th, 2025 [July 24th, 2025]
- Binance Futures Launches VIP Starter Pack: Zero Maker Fees and Liquidity Provider Trial Perks for New Futures Traders | Binance Announcements ,Binance... - July 24th, 2025 [July 24th, 2025]
- Musk Announces Vine Will Return in AI Form - Binance - July 24th, 2025 [July 24th, 2025]
- BNB surges 4.81% to $804 high as Binance volume hits $25B - AInvest - July 24th, 2025 [July 24th, 2025]
- GSR Withdraws 2,708 Ethereum from Binance: What It Reveals About Market Sentiment and Institutional Strategy - AInvest - July 24th, 2025 [July 24th, 2025]
- Altcoin News: Binance Futures Hits $100B as Altcoins Dominate 71% of Volume Amid Rising Bitcoin Outflows - Binance - July 24th, 2025 [July 24th, 2025]
- Binance Overhauls Referral Program, Unlocks Unlimited Earnings Potential - BlockchainReporter - July 24th, 2025 [July 24th, 2025]
- Binance.com: The Global Leader in Crypto Was Built by the World, for the World - USA Today - July 24th, 2025 [July 24th, 2025]
- Crypto Xiao Ma's DiaryJuly 24: US-Japan tariff reduction + Powell's peace of mind pill + ETF's sweet then bitter, is a new script unfolding in the... - July 24th, 2025 [July 24th, 2025]
- How I Earn $40/Day on Binance Without Spending a Penny (No Trading, No Referrals) - Binance - July 24th, 2025 [July 24th, 2025]
- Bitcoin and Ethereum Whales Hold on Binance While OKX Traders Rush to Exit Profits - CryptoRank - July 24th, 2025 [July 24th, 2025]
- U.S. Crypto Week Sees Digital-Asset Rules Take Shape Heres What it Means For The Industry - Binance - July 24th, 2025 [July 24th, 2025]
- Binance Earn Yield Arena: Enjoy Up to 13.3% APR With This Weeks New Limited-Time Offers! (2025-07-23) - Binance - July 24th, 2025 [July 24th, 2025]
- Binance Adds KAIA, LA, C, and ERA as New Loanable Assets and EURI as New Collateral Asset on VIP Loan - 2025-07-23 - Binance - July 24th, 2025 [July 24th, 2025]
- Pi Network Wallet Update Hints at Binance Link and Trading Access - CoinCentral - July 24th, 2025 [July 24th, 2025]
- Crypto Market Contract Wealth Guide: From Liquidation Victims to Doubling Experts, 5 Life-and-Death Iron Rules Every Beginner Must Read. - Binance - July 24th, 2025 [July 24th, 2025]
- Binance zkBNB Integration Redefines the Future of Affordable Crypto Transactions - OneSafe - July 24th, 2025 [July 24th, 2025]
- BONK News: BONK Rallies on Binance Reclassification Before Retreating From $0.000037 High - CoinDesk - July 22nd, 2025 [July 22nd, 2025]
- Cardanos Trading Volume Skyrockets with Binance at the Helm with $1.3 Billion - TradingView - July 22nd, 2025 [July 22nd, 2025]
- Solana Surpasses Binance Coin With $107B Market Cap, Price Above $200, Leading Daily Gainer and Transactions - The Defiant - July 22nd, 2025 [July 22nd, 2025]
- Binance Will Remove the Seed Tag for BONK, EIGEN, ETHFI, PENGU & PEPE on 2025-07-21 - Binance - July 22nd, 2025 [July 22nd, 2025]
- AVAX | Full Analysis for BINANCE:AVAXUSDT.P by The-white-goat - TradingView - July 22nd, 2025 [July 22nd, 2025]
- Word of the Day: Test Your Knowledge on Sharia Earn to Earn Binance Points and More! - Binance - July 22nd, 2025 [July 22nd, 2025]
- Bitcoin News Today: Altcoin Trading Volume on Binance Futures Surges 100% to $100.7 Billion - AInvest - July 22nd, 2025 [July 22nd, 2025]
- Binance Altcoin Volume Spikes Is This the Start of Altseason? - CryptoRank - July 22nd, 2025 [July 22nd, 2025]
- Gone Forever: Over $3.4 Billion in Ethereum Lost Due to Mistakes 913,111 ETH Destroyed - Binance - July 22nd, 2025 [July 22nd, 2025]
- Crypto Web3 Today(@Crypto_Web3_Today)'s insights - Binance - July 22nd, 2025 [July 22nd, 2025]
- Binance to Pause Withdrawals for 30 Minutes on July 23 for Maintenance - AInvest - July 22nd, 2025 [July 22nd, 2025]
- Major Updates on Binance Referral Pro: Earn Up to 50% Sustained Commission - Binance - July 22nd, 2025 [July 22nd, 2025]
- How to Earn $20$35+ DAILY on Binance Without Spending a Single Dollar! - Binance - July 22nd, 2025 [July 22nd, 2025]
- Binance Coin Breaks $750 Resistance Fueled by Buyer Volume - Brave New Coin - July 22nd, 2025 [July 22nd, 2025]
- Binance Square: Complete Tasks in the CreatorPad to Unlock $100,000 in C Token Rewards! - Binance - July 22nd, 2025 [July 22nd, 2025]
- CZ set to issue memecoin tracking sponsors of negative media coverage against Binance - CryptoRank - July 22nd, 2025 [July 22nd, 2025]
- Binance Removes Seed Tag From Five Altcoins Boosting Visibility - AInvest - July 22nd, 2025 [July 22nd, 2025]
- Data from Alphractal indicates critically important changes in the structure of the crypto market. - Binance - July 22nd, 2025 [July 22nd, 2025]
- Binance Alpha Announces July 2025 Airdrop for Active Users - AInvest - July 22nd, 2025 [July 22nd, 2025]
- $XRP Breakout? Ripple CTO Reveals the REAL All-Time High! - Binance - July 22nd, 2025 [July 22nd, 2025]
- Grvt Strategies: Building an Institutional-Level Strategy Mall on-chain that Everyone Can Participate In - Binance - July 22nd, 2025 [July 22nd, 2025]
- Binance Removes Seed Tag from Five Tokens on July 21 - AInvest - July 22nd, 2025 [July 22nd, 2025]
- 100 mln TRX moved to Binance: Where will this Tron accumulation take prices? - AMBCrypto - July 20th, 2025 [July 20th, 2025]
- 2 New Crypto Picks That Are Set To Outperform Binance Coin (BNB) in 2025 - MSN - July 20th, 2025 [July 20th, 2025]
- Bitcoin News Today: Whale Profits $13.19 Million From 131 BTC Transfer To Binance - AInvest - July 20th, 2025 [July 20th, 2025]
- Ethereum News Today: 59,999 ETH worth $226 million transferred from HTX to Binance - AInvest - July 20th, 2025 [July 20th, 2025]
- Pump.fun Transfers 2 Billion Tokens to Binance for Increased Liquidity - AInvest - July 20th, 2025 [July 20th, 2025]
- Saylor Wouldn't Have Touched XRP, Analyst Says - Binance - July 20th, 2025 [July 20th, 2025]
- The Ohio Public Employees Retirement System increased its holdings by 21,499 shares of Strategy stock in the second quarter of this year - Binance - July 20th, 2025 [July 20th, 2025]
- Binance Will Support the Maker (MKR) Token Swap, Redenomination, and Rebranding to Sky (SKY) - Binance - July 20th, 2025 [July 20th, 2025]
- Corporate Demand Grows, Revenue Record Breaks: What's Happening at Ethena - Binance - July 20th, 2025 [July 20th, 2025]
- ETH & Elliott Wave: Riding the Bullish Wave to $10K! - Binance - July 20th, 2025 [July 20th, 2025]
- After the Market Surge, Justin Sun Transfers a Large Controversial Amount of Altcoins to Binance - Binance - July 20th, 2025 [July 20th, 2025]
- Binance alpha has launched UPTOP, and holding at least 180 Alpha points allows you to claim the airdrop - ChainCatcher - July 20th, 2025 [July 20th, 2025]
- Pump.fun Transfers 2 Billion Tokens to Binance Valued at $12.75 Million - AInvest - July 20th, 2025 [July 20th, 2025]
- Bitcoin News Today: 1,000 Bitcoin Withdrawn from Binance to New Addresses - AInvest - July 20th, 2025 [July 20th, 2025]
- Rumored Binance Launch Has Arctic Pablo Turning HeadsWhile Brett And Ponke Light Up The Meme Coin Map - CoinCentral - July 20th, 2025 [July 20th, 2025]
- BNB Rises as Binance Dominates Q2 Volumes and Windtree Unveils $200M Treasury - CoinDesk - July 20th, 2025 [July 20th, 2025]
- Correction down for Bitcoin - Binance - July 20th, 2025 [July 20th, 2025]
- ETH 3rd Attempt at Resistance Breakout or Bull Trap? - Binance - July 20th, 2025 [July 20th, 2025]
- Crypto News: Crypto Market Cap Nears $4 Trillion as Ether and XRP Surge on U.S. Regulatory Breakthroughs - Binance - July 20th, 2025 [July 20th, 2025]
- TRON Ecosystem Poised for Explosive Growth as Binance Alpha Lists NFT, PePe, and SUNDOG - Bitcoin.com News - July 20th, 2025 [July 20th, 2025]
- Binance Alpha will conduct an airdrop today at 15:00, the specific cryptocurrency has not been announced. - - July 20th, 2025 [July 20th, 2025]
- Bitcoin News Today: Bitcoin Surges 118% to $118,012.31 on Binance USDT Market - AInvest - July 20th, 2025 [July 20th, 2025]
- Hivellos HVLO Token Now Available in Binance Mobile App - Morningstar - July 18th, 2025 [July 18th, 2025]
- Trusta.AI (TA) Will Be Available on Binance Alpha and Binance Futures (2025-07-21) - Binance - July 18th, 2025 [July 18th, 2025]
- Binance Square: Complete Tasks in the CreatorPad to Unlock $100,000 in ERA Token Rewards! - Binance - July 18th, 2025 [July 18th, 2025]
- Tether Mints 2 Billion USDT Boosting Institutional Trading on Binance - AInvest - July 18th, 2025 [July 18th, 2025]
- Participate in the Exclusive BAS (BAS) Pre-Token Generation Event (Pre-TGE) and Booster Program on Binance Wallet - Binance - July 18th, 2025 [July 18th, 2025]
- Avoid This XRP Mistake Before Its Too Late! - Binance - July 18th, 2025 [July 18th, 2025]