Why Do Some P2P Merchants Require Users to Complete Additional Identity Verification?
Main Takeaways
Featuring the best liquidity, robust security, and access to over 700 payment methods and 100 fiat currencies, Binance P2P is dedicated to facilitating peer-to-peer (P2P) crypto transactions.
Some merchants on our P2P platform require verified users to complete additional identity verification if it’s their first time trading with them.
This is because some P2P merchants are regulated entities and are required by law to collect identity verification information from users with whom they trade.
Peer-to-peer (P2P) trading is a popular way to buy and sell cryptocurrencies, especially for those who enjoy being able to choose from a wide range of payment methods.
With best-in-class liquidity, reliable security safeguards, and access to over 700 payment methods and 100 fiat currencies, the Binance P2P platform is one of the easiest gateways for users to trade crypto on their own terms.
While users can enjoy more freedom on traditional P2P platforms, their lack of intermediaries can sometimes result in poor P2P trading experiences. At Binance, stringent identity verification checks are used to mitigate risks and make the overall P2P trading experience more seamless and secure.
What Is Know Your Customer (KYC) or Identity Verification?
Before you can start trading on Binance P2P, you need to complete the identity verification process, also known as Know Your Customer (KYC). Identity verification assures that users are trading with their real identities. Once users have completed the KYC process, they are marked as verified. Identity verification standards are put in place to protect our P2P platform and its users against bad actors.
Verified on Binance Doesn’t Mean You’re Verified With P2P Merchants
When trading on Binance P2P, you're buying or selling crypto for fiat currencies with another user, not with us. We are the platform that facilitates the P2P crypto exchange between users and merchants. As mentioned above, users and merchants must complete the identity verification process to trade on Binance P2P. However, we keep your KYC details private from merchants and other users.
Compliance With Local Regulations
Some P2P and P2Pro merchants are regulated entities and are required by law to collect KYC information from users with whom they trade. If it’s your first time transacting with merchants who require additional identity verification checks, they'll most likely ask you to either:
a) directly send them a copy of your passport or ID in the order chat or
b) ask you to complete identity verification via a third-party KYC verification provider like SumSub.
This is a legitimate request on the P2P merchant's part as it is a legal requirement. As such, we encourage merchants to comply with local regulations and ensure they have the identity verification information they are legally required to collect. We also encourage users to accede to such requests in order to ensure all trades are above board.
However, users always have the discretion to decide if they want to complete this extra verification. If you don't want to complete it, you can cancel the trade and choose another offer.
Ready to start trading crypto? Complete the identity verification process to get started!
Alternative Transaction Options
P2P users who prefer not to share their personal documents with P2P merchants can opt to trade with other sellers and merchants who don't have such requirements. When additional identity verification is required, merchants will likely communicate this in their terms, so you can agree to them and place the order, or look for other ads. That said, always read the terms and conditions stated in ads before placing any order on Binance P2P.
Get Started On Binance P2P Today
Ready to start securely trading on Binance P2P? Sign up for a Binance account and complete the identity verification process. Once your account is verified, you can start trading crypto on our P2P platform.
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Disclaimer: Your use of Binance P2P services and all information and other content (including that of third parties) included in or accessible from Binance P2P services is at your sole risk. Our only responsibility is to handle crypto transactions. All payments are final upon completion unless otherwise required by law. The Binance P2P platform has neither the right nor obligation to resolve any disputes arising from a completed payment. Neither the Binance P2P platform nor its merchants shall be responsible for any loss after a completed payment.