Binance, a leading cryptocurrency exchange, announced on the 27th that it has reduced the withdrawal limit by 97% for customers with unverified accounts. Previously, unverified accounts could withdraw up to 2 BTC per day which has now shifted to 0.06 BTC for newly registered accounts.
The company announced the decision on its website. They wrote:
“Daily withdrawal limits will be adjusted to 0.06 BTC for accounts which have completed only Basic Account Verification. This change is effective immediately for new account registrations and will be made effective for existing users in phases starting from 2021-08-04 00:00 AM (UTC) and completed by 2021-08-23 00:00 AM (UTC).”
A complete KYC registration with the company can allow users to withdraw up to 100 BTC per day.
Accounts with ‘basic account verification’ are only required to submit their official name, address, and personal email. However, these details cannot be verified without any government-issued identification.
The company asserted in a Twitter post that the reduction is appropriate given the current price of Bitcoin. Today, 2 BTC stands at $79,606 ( 2021-07-28 4:58 AM (UTC)). The reduction will make it harder to abuse cryptocurrencies for criminal activities such as terror financing and drug trafficking.
Recently, Binance cut down its leverage limit from 100x to 20x to reduce high leverage margin trading. These moves by the exchange come at a time when Binance is facing regulatory warnings from authorities worldwide. As of now, regulatory bodies from Japan, Singapore, the UK, and Italy have issued warnings against the trading platform.