Major cryptocurrency exchange Binance adds anti-money laundering checks

The logo of Binance is displayed on the exhibition stand at the Delta Summit, Malta’s official blockchain and digital innovation event promoting cryptocurrency in Ta' Qali.

FRANKFURT - Binance, the world's largest cryptocurrency exchange, said on Friday that it would be adding stricter customer checks for anti-money laundering requirements with immediate effect.

In recent months Binance has been under pressure from regulators across the world concerned over the use of crypto to launder money and lax consumer protection.

The exchange dialled back its products offerings, including linked trading and tokens linked to equity, and said it wanted to improve relations with regulators. The Dutch central bank said on Monday, Binance was not in compliance with anti-money laundering and anti-terrorism financing laws.

Binance said on its website that users would have to meet with immediate effect a verification process to access its products and services. Those who have not done so will be able to cancel funds, withdraw orders and close positions only.

Binance is by some measures the biggest platform in the world. Its trading volumes in July were $455 million, down almost a third from a month earlier amid cooler crypto markets but still No. 1 global for crypto traders, according to data from CryptoCompare

Binance's corporate structure is opaque. The holding company is registered in the Cayman Islands, according to Malaysia's law document documents and British Securities & Exchange Office, the Netherlands.