Reported by Sam Reynolds

Binance is asking its prime brokers to do enhanced Know Your Customer (KYC) work on clients to ensure that they aren’t serving U.S. nationals, according to a report from Bloomberg.

Prime Brokers act as intermediaries between institutional investors and the market, offering services such as custody, trade execution, risk management, and lending with the aim of attracting institutional investors by providing a comprehensive end-to-end service model similar to their counterparts in traditional finance.

After Binance pleaded guilty to breaking sanctions and money-transmitting laws, settling the case for $4.3 billion, it has required prime brokers like FalconX and Hidden Road to collect additional client information, including office addresses and the locations of employees and founders, along with signed attestations verifying the accuracy of the information, Bloomberg reported.

Read full report: https://www.coindesk.com/policy/2024/03/19/binance-asks-prime-brokers-to-enhance-kyc-to-block-us-nationals-bloomberg/amp/