Binance Urges Prime Brokers to Enhance KYC to Avoid U.S. Investors
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 Bloomberg citing 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 exchange’s 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.
Binance asks prime brokers to tighten KYC to block US nationals
According to Bloomberg, Binance is now requiring major brokers to enhance their KYC to prevent US https://t.co/hoMOuVusA9 is reported that after Binance admitted to violating sanctions and remittance laws and settled…
— DexBot (@dexbot) March 19, 2024
Recent court documents revealed that Binance’s rapid growth was largely driven by U.S. customers, despite the exchange’s 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
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