Attention Binance Link users! The era of anonymous sub-accounts is fading fast. In a move towards stricter compliance, Binance has implemented mandatory Know Your Customer (KYC) verification for all sub-accounts created under the Link Program. This applies to everyone, from active traders to those simply using a sub-account for deposits.

The clock started ticking on March 20, 2024. Since then, sub-accounts lacking proper KYC documentation have been facing limitations on their activities. But the real deadline looms on May 20, 2024. After that date, non-compliant sub-accounts will be fully restricted, effectively locked out of the Binance Link Program services.

What Does This Mean for Exchange Link Account Holders?

The responsibility falls on your shoulders, Exchange Link account holders. You'll need to ensure all your sub-accounts are fully integrated with the Link-KYC module. Be prepared to provide additional user information for your sub-account holders when requested. This might include details like the source of their funds, where their wealth comes from, and proof of their address.

Remember, communication flows through you. Binance will only interact directly with Exchange Link account holders. It's your job to keep your sub-account users informed about these changes and any necessary actions on their end.

Fighting Financial Crime: The PEP Puzzle

As part of their efforts to combat money laundering, Binance might request sub-account holders to complete a questionnaire to identify potential Politically Exposed Persons (PEPs). This questionnaire will delve into their PEP status, occupation, employer details, and any connections they might have to PEPs.

Non-Compliance Comes with Consequences

Failing to comply with KYC requirements will put a serious damper on your sub-account's trading activities. Spot trading will be completely shut down, meaning no new orders can be placed, and existing orders will be cancelled. Futures and margin trading will also be restricted, allowing only the reduction of existing positions, not the opening of new ones.

On top of trading limitations, restricted sub-accounts won't be able to receive deposits. If a deposit accidentally lands in a restricted account, retrieving it could take a whopping 45 days, and you'll be slapped with a hefty $200 administrative fee for the trouble – regardless of the deposit amount.

Transparency and Security: The Driving Force

Binance stresses that these stricter KYC measures are crucial for creating a secure, transparent, and user-friendly trading environment. Remember, crypto investments carry inherent risks. Always do your own research and consider consulting a financial advisor before making any investment decisions.