Why Does Binance Require Ultimate Beneficial Owner (UBO) Declaration for Corporate KYC?
The requirement to declare ultimate beneficial owners (UBOs) for corporate KYC is not an extra threshold set by Binance, but a mandatory obligation under anti-money laundering (AML) laws — without clarifying "who ultimately controls this company", Binance cannot safely open an institutional account. In essence, this strips away the corporate legal shell to find the natural person(s) truly controlling the funds.
The world's largest cryptocurrency exchange by trading volume,leading in security and liquidity.
New user benefit: Enjoy 20% off trading fees upon registration!
Step 1: Understand Why Binance Must Verify — Regulatory Red Lines
Objective: Understand the origin of this requirement and know that it is a non-negotiable rule.
How to do it:
Legal basis: According to the international standards of the FATF (Financial Action Task Force) and relevant regulations across jurisdictions, virtual asset service providers must identify and verify the ultimate beneficial natural persons of legal entities. Binance, as a compliant exchange, must enforce this, otherwise it faces huge fines or even shutdown risks.
Real case: The BitMEX exchange failed to implement KYC and AML measures between 2015 and 2020, becoming a tool for large-scale money laundering and sanctions evasion. It was prosecuted and pleaded guilty to the US Department of Justice, and its founders were sentenced to home confinement in 2022. Binance itself also paid a $4.3 billion settlement in 2023 due to compliance issues.
When is it done: You understand that UBO declaration is a "survival clause" for the platform and an "account-opening prerequisite" for users.
Step 2: Determine Which Reporting Standard Applies to Your Company
Objective: Identify the UBO reporting threshold (25% or 10%) based on your company's place of incorporation.
How to do it:
Case A: Company incorporated in major jurisdictions (e.g., US, Canada, Australia, UK, Italy, Ireland, Singapore, Hong Kong)
You must declare all ultimate beneficial owners who directly or indirectly hold 25% or more of the company's shares.
Case B: Company incorporated in other jurisdictions
The threshold is usually stricter — you must declare all ultimate beneficial owners holding 10% or more of the shares.
When is it done: You know which shareholding percentage threshold applies to your company and have a corresponding list of beneficial owners ready.
Step 3: Prepare and Submit UBO Declaration Materials
Objective: Collect the identity documents of ultimate beneficial owners and proof of the company's ownership structure.
How to do it, prepare the following materials:
UBO personal identification: Valid government-issued photo ID (passport, national ID card, driver's license).
UBO proof of address: Recent utility bill, bank statement or government letter.
Proof of company ownership structure:
Register of shareholders
Company structure chart (showing ownership percentages at each layer)
Official corporate filing documents (showing shareholding percentages)
When is it done: All UBO identity and address documents are collected, company ownership structure documents are ready, and submitted to the Binance corporate verification page.
If the company structure is complex, involving multiple layers or trust structures, Binance will require an "Ownership Drilldown", tracing through each layer to the ultimate natural person(s).
Common Reasons for Rejection
Omitted beneficial owners: Not covering all shareholders who meet the threshold (25% or 10%), resulting in incomplete declaration information.
Document mismatch: The declared UBO name or shareholding percentage does not match the shareholder register or corporate filing documents.
Unclear or non-compliant documents: Uploaded ID photos that are blurry, have reflections, incomplete corners, or use watermarked/cropped images — these will be rejected outright.
The world's largest cryptocurrency exchange by trading volume,leading in security and liquidity.
New user benefit: Enjoy 20% off trading fees upon registration!
Risk Warning
Account cannot be opened: Without declaring or if declaration is inaccurate, the institutional account will not pass verification and cannot use Binance's corporate services.
Fund freezing risk: Submitting false UBO information is a serious compliance violation. Once discovered, Binance has the right to freeze corporate account funds and report to regulatory authorities.
Legal consequences: Deliberately concealing ultimate beneficial owners to evade regulation may involve legal liabilities related to anti-money laundering.
Next steps: Organize your company's ownership structure chart, list all UBOs who need to be declared based on the applicable shareholding threshold. Prepare each person's passport or ID document and proof of address, then start the corporate account verification process. After submission, watch for email notifications and respond promptly if additional documents are requested to avoid prolonging the review period.
