Amidst regulatory scrutiny, Binance reduces the withdrawal limit and launches tax report system

Binance has reduced the daily 2 BTC withdrawal limit for users with basic account verification to 0.06 BTC.

Binance will also implement a tax reporting system starting in August.

Binance has over the past few months faced regulatory hurdles in several countries including the UK. As part of its effort to make things right, the exchange recently announced its decision to reduce the maximum leverage limit to 20X to enforce the safe trading campaign. The latest development is the enforcement of the Know-Your-Customer (KYC) requirements which have been a focal point for international regulators. 

Binance has introduced a new withdrawal limit of 0.06 BTC per day equivalent to around $2400 as of press time. This will apply to users who have not completed the full account verification. This is a massive reduction from the previous withdrawal limit of 2 BTC per day equivalent to $80,000. The newly imposed limit will immediately take effect with new users with basic account verification being urged to complete their KYC.

We’re enhancing our KYC efforts to further our leadership in this area.

Daily withdrawal limits will be adjusted from 2 BTC to 0.06 BTC (roughly ~$2,000 USD) for accounts who have only passed Basic account verification.

— CZ Binance (@cz_binance) July 27, 2021

With the existing users, Binance will slowly introduce new withdrawal limits in phases starting from August 4 according to the exchange CEO Changpeng Zhao. The process is expected to take full effect by 23 August. The announcement further discloses that the withdrawal limit will be refreshed every day at 00:00 AM. In addition, those who go through the full identity verification will have the option to withdraw as high as 100 BTC per day, worth $4 million. 

Binance introducing tax reporting system

As part of its effort to perfectly comply with the regulatory demand, Binance will also implement a tax reporting system starting from Wednesday. According to reports, users will be able to “track their crypto transactions, transfer transaction history to third-party vendors, and obtain an instant overview of their instant tax liabilities.”

Binance is not endorsing any particular third-party tax tool software. Please exercise your own discretion and/or consult your personal tax adviser based on your personal tax circumstances and requirements when selecting the third-party tax tools.

Following the recent crackdowns on the exchange, Zhao stated that he is willing to step down from his position if any credible replacement with regulatory background emerges. For now, the exchange has taken several measures including halting its trading services for stock tokens and delisting margin trading pairs for Euros, Australian Dollar, and British Pounds Sterling. The world’s largest crypto exchange by trading volume has intended to work with regulators as it expands.

Binance is ready to assist regulators from around the world and together find the optimal way to set a fair playing field – consumer protection is important to all of us. We want to create a sustainable ecosystem around blockchain technology.

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