How to Prepare for Binance's Request to Explain Source of Wealth
Being asked by Binance to explain your source of wealth means you have triggered the Enhanced Due Diligence (EDD) process—this is a standard procedure the platform follows to comply with anti-money laundering regulations, not something directed at you personally. You need to select the appropriate supporting documents from the officially accepted list based on the actual category of your funds.
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The following explains how to determine your type of source of funds, prepare the corresponding documents, and the key points to ensure approval on the first attempt.
Prerequisites
- You have logged into your Binance account and reached the Source of Wealth (SOW) or Source of Funds (SOF) verification page.
- You clearly know the origin of the main funds in your account (salary, investment returns, cryptocurrency trading, inheritance, etc.).
- You have access to the channels for obtaining the corresponding supporting documents (banking app, exchange statements, employer, etc.).
Step 1: Confirm Whether You Need to Declare SOW or SOF
On the EDD verification page, the system will ask you to declare two types of information separately:
- Source of Wealth (SOW): The origin of the total assets you have accumulated over your lifetime—for example, years of salary income, business profits, inheritance, investment appreciation, etc. It answers the question: "How did you accumulate your money?"
- Source of Funds (SOF): The origin of the specific funds you are depositing into your Binance account. It answers the question: "Where did this particular money you are depositing come from?"
Example: You accumulated several million in total assets through years of salary (SOW), but the money you are depositing into Binance this time came from selling a house (SOF). Both need to be filled in, but the content may differ.
Completion criteria: Check the page carefully to see whether you are required to select SOW or SOF, and do not choose the wrong one.
Step 2: Select Your Source of Funds Category
Based on your actual situation, choose the corresponding option from the following common categories:
Scenario A: Funds from Salary (Employment Income)
- Applicable situation: You have a regular job and use your salary income to buy crypto or make deposits.
- Documents to prepare: Payslips for the last 3 months or bank statements showing salary deposits, or the most recent annual tax return.
Scenario B: Funds from Self-Employment/Business
- Applicable situation: You run your own company, are a sole proprietor, or a freelancer.
- Documents to prepare: The most recent annual tax return, or self-employment invoices/contracts/profit and loss statements showing monthly or annual income.
Scenario C: Funds from Cryptocurrency Investment or Trading
- Applicable situation: You made money buying and selling crypto on other exchanges and withdrew it to Binance.
- Documents to prepare: Account statements from the trading platform (showing your account information, trading activity, and balances), or wallet screenshots (showing the amount held and wallet address), or bank statements showing the proceeds from cryptocurrency sales.
Scenario D: Funds from the Sale of Property or Other Assets
- Applicable situation: Funds obtained from selling a house, car, etc.
- Documents to prepare: Sale contract/settlement statement, and bank statements showing the receipt of the sale proceeds.
Scenario E: Funds from Inheritance or Donation
- Applicable situation: You received an inheritance or a gift.
- Documents to prepare: A copy of the will (signed by the lawyer or executor), or a donation agreement, and bank statements showing the receipt of the funds.
Scenario F: Funds from Mining or Staking Rewards
- Applicable situation: You obtained cryptocurrency through mining or PoS staking.
- Documents to prepare: Proof of purchase of mining equipment, and proof of mining income from the relevant platform (screenshots of at least 3 months of transaction records).
Completion criteria: You have selected the category that matches your actual situation.
Step 3: Prepare Documents According to the "Golden Rules"
Regardless of which category you choose, all documents must meet the following standards; otherwise, they will be rejected:
- Name consistency: The name on the document must exactly match the real name on your Binance account.
- Clear and legible: It must show your full name, the issuing institution's logo, and the date of issuance. The resolution should be at least 300 DPI, and all four corners of the document must be visible. Do not crop, blur, or apply filters.
- Non-editable format: Only PDF, JPG, and PNG formats are accepted. Excel or Word files will generally be rejected.
- Timeliness: The document should reflect recent activity—payslips need to be from the last 3 months, tax returns from the most recent tax year.
- Completeness: Original PDFs are preferred. Screenshots are accepted only if they show the full page (including URL and date).
Completion criteria: The prepared documents meet all the above conditions simultaneously.
Step 4: Upload Documents and Submit
On the EDD verification page:
- Fill in the details of your income source(s) and annual income (if there are multiple sources, fill them in one by one).
- Select all options relevant to your asset source.
- Click "Upload" to submit the corresponding supporting documents.
- Check the page prompts to ensure all required fields are filled in, then click submit.
Completion criteria: The page shows that the submission was successful and the status is under review.
Common Reasons for Failure
The document does not match the selected source of funds category
The most common selection error is treating "withdrawal from Binance" as the source of funds, choosing "cryptocurrency investment" but submitting a bank statement. If you transferred coins from another platform to Binance, you should select the "cryptocurrency investment" category and provide your Binance account statement and the withdrawal record from the originating platform. If you selected the wrong category, you can click "Resubmit" to change the documents.
Risk Reminders
- Do not forge or modify documents: Any attempt to tamper with documents may lead to account termination.
- Account functions may be restricted during the review: Functions such as withdrawals and C2C trading may be suspended until EDD is completed.
- Do not obscure any information on the documents: Even redacting parts for privacy will result in the document being rejected. If you have information that needs to be hidden, select the "Other" option and explain the reason.
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How to Confirm the Process is Complete
After submission, check the status on the [Identity Verification] page. EDD review usually takes 1-3 working days. When the status changes to "Completed" or "Verified", the process is complete. If rejected, check the specific reason for rejection, supplement or replace the documents, and resubmit.
If there is no update after more than 3 working days, contact human customer support to follow up on the ticket, providing the type of documents you submitted and the submission time so the agent can help check the review progress.
