Binance Source of Funds (SoF): What Is It?
Binance Source of Funds (SoF) simply means where the money you deposit into your Binance account came from. It is not your total net worth, but rather proof of the lawful origin of the specific funds you are moving onto the platform — a compliance requirement that helps Binance fulfill its anti-money laundering obligations.
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Step 1: Distinguish between two easily confused concepts – SoF and SoW
What to do: Understand that "Source of Funds" and "Source of Wealth" are not the same thing. Binance needs the former.
How to do it, refer to the definitions below:
Source of Funds (SoF): Refers to the origin of the money you have already deposited or plan to deposit into your Binance account. It is always liquid assets (cash, bank deposits, assets that can be quickly converted to cash). Binance is asking: "Which channel did the money you intend to place on our platform come from?"
Source of Wealth (SoW): Refers to how your total accumulated assets were created, such as long-term employment income, business profits, inheritance, etc. This covers both liquid and illiquid assets (property, company equity, etc.).
An analogy: SoW asks "Where did your lifetime wealth come from?" SoF asks "Is the money you're depositing today from your salary or from selling a house?"
When you are done: You understand that SoF refers to a "specific deposit" and not "how much money you have in total".
Step 2: Understand why Binance asks – compliance obligations
What to do: Recognize that this is not the platform prying into your life, but a legal requirement.
How to do it, check the following background:
Anti-Money Laundering (AML) regulatory requirements: As a regulated exchange, Binance must comply with global AML and counter-terrorist financing regulations. Verifying the source of funds is part of Customer Due Diligence (CDD).
Ensuring platform security: Verifying the source of funds helps prevent illicit funds (from money laundering, fraud, etc.) from entering the platform.
Trigger timing: Usually requested during Enhanced Due Diligence (EDD), for example when an account shows large transactions, frequent deposits and withdrawals, or triggers risk models.
When you are done: You understand that SoF review is part of the compliance process, not special treatment aimed at you personally.
Step 3: Match acceptable source of funds types
What to do: Identify which category your situation falls into and prepare the corresponding supporting documents.
How to do it, refer to the common types and required documents below:
| Source of Funds Type | Typical Scenario | Acceptable Supporting Documents (Examples) |
|---|---|---|
| Employment Income | Salary for employees / self-employed | Latest 3 months' payslips / bank statements, tax returns, employment verification letter |
| Investment Returns | Money earned from stocks, crypto, funds, etc. | Investment account statements, wallet screenshots, crypto transaction records, tax statements |
| Asset Sale | Money from selling a house, car, or other assets | Sales contract, bank credit records, settlement statement |
| Savings Deposits | Money accumulated over time | Savings account statements for the last 3 months |
| Inheritance / Donation | Funds inherited or gifted from family | Copy of will, distribution statement from lawyer, gift agreement and bank credit records |
| Loan | Money borrowed from a bank or individual | Loan agreement, bank disbursement records (the platform may additionally require the lender's source of funds) |
| Crypto Mining | Mining income | Mining equipment purchase receipts, complete mining income records from mining pool/platform (at least 3 months) |
When you are done: You have identified your source of funds type and know which documents are required.
Step 4: Ensure documents meet the "Golden Rules"
What to do: Prepare documents according to Binance's requirements to avoid rejection due to formatting issues.
How to do it, adhere to the following mandatory criteria:
Name consistency: The name on the document must exactly match the name on your Binance account.
Clear and legible: Use high resolution (300 DPI recommended), ensure all four corners are fully visible, no cropping, no blurring, no watermarks or filters.
Unedited: Only PDF, JPG, PNG formats are accepted. Excel or Word edited files are not accepted.
Recently issued: Documents should reflect recent financial activity (e.g., payslips from the last 3 months, or tax filings from the last year).
Screenshot restrictions: If providing a screenshot, it must show the full page (including the URL link, your name / company name, and date).
When you are done: Your prepared documents fully meet all five standards above.
Common Reasons for Rejection
Document does not match the declared type: For example, you selected "Employment Income" but submitted a bank savings statement.
Document is unclear or incomplete: Photo is blurry, corners are cropped, key information is obscured.
Out of time range: Submitted a payslip from a year ago when the system requires the last 3 months.
Required supplementary documents not provided: Some types (such as personal loans) may require the loan agreement + bank credit record + the lender's proof of funds simultaneously; all are indispensable.
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Risk Reminder
Submitting false or forged documents is a serious violation. Binance reserves the right to permanently freeze the account and report to regulators.
If account functionality is restricted due to failing the SoF review, the account will remain in a "restricted" state until the review is passed. During this period, deposits or trading may be unavailable.
For crypto assets with complex origins (e.g., on-chain transactions across multiple addresses, mixers), it is recommended to organize complete on-chain transaction records and wallet screenshots in advance to avoid repeated requests for additional materials.
Next step: Log into your Binance account, go to the [Identity Verification] page or [Notification Center], and check whether you are required to complete EDD verification. If so, follow the on-screen prompts to select your source of funds type, prepare and upload materials according to the document checklist in this article. It is recommended to scan or photograph all documents at high resolution. After submission, monitor your email notifications; the review usually takes several business days.
