What is Binance?
Binance is the biggest bitcoin and altcoin exchange in the world in terms of daily trading volume. This company was created in 2017 by Changpeng Zhao, an individual who had earlier created a high frequency trading software.
Binance is a centralized exchange. Now what is a centralized exchange? Centralized exchange means that there is a middleman or third party involved while processing a transaction between two individuals. This middleman is trusted by both the buyer and the seller. Centralized cryptocurrency exchanges are the most common ways used to buy and sell cryptocurrencies.
One must wonder, ‘Why use centralized exchanges when the whole point of crypto is decentralization?’. Here’s why: Centralized exchanges offer a level of security and monitoring that is not possible on an individual level. They also match potential trading partners from the network of traders on their platform. Centralized exchanges make sure that the money of the users is in a safe place. So the users don’t have to worry about losing your wallet key and consequently losing all their money.
Being a centralized exchange, Binance has to comply with financial regulations globally. The main regulations being AML (Anti-money laundering) and KYC (Know your customer) laws. KYC is done in order to identify the user, understand that his source of funds is legitimate and assess money laundering risks. It is an important step to protect the financial institution and other users from fraud, corruption, terrorist financing and money laundering.
What is Binance verification?
Binance verification is the process of identity verification and the steps involved in it. It is mandatory for Binance to know its customers to keep up with the global financial regulations. Binance verification needs the users to submit identity proofs, address proof, photo, etc.
Why should you complete ID verification on Binance?
- Better security: ID verification is a must if you want better security for our account from Binance. When a user has completed ID verification, Binance limits who can use and change his personal details. Your withdrawal details cannot be altered once you have completed the ID verification. When a new withdrawal method needs to be added, the details must match the details of the withdrawal method already in use. The Binance platform is always looking for ways to enhance the security of its users and protect them from fraudulent activities. ID verification is important for creating a safe network for trading cryptocurrencies.
- Financial regulations: Making ID verification mandatory for all the users is just one way that centralized exchanges comply with the global financial regulations. In order to operate in most countries, keeping in line with KYC and AML laws is mandatory. Financial regulators have imposed these laws in order to enhance security and keep a check on illegal activities.
- Access to higher trading limits: When a user completes the Binance verification, he unlocks access to higher trading limits on the platform. Binance offers limited features to users who complete the most basic identity verification but to increase your limits you need to undergo the complete Binance verification. The basic identity verification is completed the moment you sign up for an account.
Setting up 2FA
2FA or two-factor authentication is a security protocol in which every user’s account is secured with a minimum of two layers of security or factors. These factors can be your account password paired with email verification, phone SMS, or third party authenticator app. Binance gives you the option to use at least two of the three factors to secure your account.
You will be required to set up 2FA as soon as you open an account on the Binance platform. You cannot proceed to Binance verification or withdraw funds without setting up two-factor authentication. Binance will show a constant notification on your homepage asking you to complete the 2FA.
Step by step guide to complete Binance verification
Now that you have created an account, given the basic information and have set up 2FA, you can move to the identity verification process.
Log in to your account using your email and password and then tap on ‘identification’ which appears in the user centre at the top of your screen.
Click on [Get verified]
A personal verification page will open up and show you three options- Enterprise verification, Verified and Verified plus. On this page you can also view the deposit and withdrawal limits according to your country of residence. The trading limits are different for different countries. You can change the country name from the button next to [Residential country/Region] on the right corner of the page. The basic level of verification is already complete if you have a Binance account. Click on [Start now] under Verified to proceed.
Select your country of residence. Make sure that the country of residence you choose is similar to the one in your other ID documents. Click on [Continue]. Now you will get a list of documents required to verify your identity according to the resident country you chose.
Enter your personal details and click on [Continue]. Make sure that all the personal details you are entering are in line with your ID documents. You can’t make changes once the details are confirmed.
In the next step you will be asked to upload images of your ID documents.You have to choose the type of ID you are using for verification and the issuing country of your documents. Passport, ID card, or driver’s license are the most common documents that the people use to verify their account. Please refer to the options offered for your country because each country has different rules and regulations.
Follow all instructions carefully while uploading the documents. Make sure that the whole document is visible and no part is cut out or blurry. If your document has both front and back parts then you will have to upload both.
After uploading the documents, it is time for a photo verification. Click on [upload file] to choose an image from your computer.
After that the system will require facial recognition. Click [continue] to proceed for facial verification on your computer. Avoid using filters or wearing hats and glasses and make sure the lighting is sufficient.
If you want to do facial recognition through your phone then you can click on the QR code in the bottom right corner of the screen. Then scan the QR code through your Binance app to complete the facial verification.
The process is complete. Now wait patiently for the confirmation email. Please do not refresh your browser in the middle of the ID verification process. One can attempt to complete the Binance verification upto 10 times per day. If your applications gets denied 10 times in a day then you will have to wait for the next 24 hours to attempt again.
How long does Binance verification take?
The submission of the required documents and photo verification takes 15 minutes. Then Binance will review your documents and confirm the identity verification within 10 days. The confirmation can happen sooner too. Just wait for your confirmation email.
Identity verification is an important step to ensure financial safety for yourself and other users on the network. It also helps you to enable higher trading limits on your account. If you want the security that a centralized exchange provides then you must complete the full identity verification. Completing the KYC process helps your exchange to know you better and comply with the laws of the financial regulators. If you have nothing to hide then ID verification should not be a problem to you.