The cryptocurrency exchange Binance has reinforced its anti-money laundering (AML) measures by extending the T+1 withdrawal policy to its New Taiwan Dollar (TWD) and Euro (EUR) peer-to-peer (P2P) trading markets. This move underscores Binance’s ongoing commitment to regulatory compliance and user protection, particularly within its C2C trading platform, where users directly exchange fiat currency for digital assets.
This article explores the implications of the updated policy, how it affects traders, and what it means for the broader landscape of secure, compliant crypto transactions.
Understanding the T+1 Withdrawal Policy
Binance first introduced the T+1 withdrawal rule in August of the previous year as a safeguard against illicit financial activity. The policy mandates that users who acquire cryptocurrency through C2C transactions must wait 24 hours before withdrawing an amount equivalent to their recent fiat deposit—calculated in BTC value.
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For example, if a user deposits funds via TWD or EUR on Binance’s P2P marketplace and receives BTC in return, they cannot immediately transfer that full BTC amount off-platform. The system locks a value equal to the newly acquired BTC for one day. However, trading and internal transfers within Binance remain fully permitted during this period.
This mechanism acts as a cooling-off window, enabling transaction monitoring and reducing the risk of funds derived from fraudulent or illegal sources being rapidly dispersed across blockchains.
How the Policy Works in Practice
Let’s break down a real-world scenario based on Binance’s official announcement:
Suppose a user already holds 2,000 USDT in their account—equivalent to 0.2 BTC under current market rates. They then complete a C2C trade, purchasing 1 BTC using New Taiwan Dollars.
Under the T+1 rule:
- The equivalent of 1 BTC in digital assets becomes temporarily restricted.
Within the first 24 hours, the user may withdraw:
- The original 2,000 USDT, leaving behind the newly acquired 1 BTC, or
- Up to 0.2 BTC (the value of their pre-existing balance), keeping at least 0.8 BTC locked in the account.
As long as at least 1 BTC worth of assets remains in the account post-withdrawal, compliance is maintained.
This flexible approach ensures users retain access to their existing funds while preventing immediate large-scale exits of freshly purchased crypto—effectively balancing usability with security.
Why Expand T+1 to TWD and EUR Markets?
The extension of this policy to New Taiwan Dollar and Euro markets reflects growing regulatory scrutiny over crypto-fiat gateways. These currencies serve as key entry points for users in Taiwan and the European Union, regions with increasingly strict AML frameworks.
By standardizing the T+1 rule across major fiat pairs, Binance aligns itself with global financial regulations such as the EU’s Anti-Money Laundering Directive (AMLD) and Taiwan’s evolving digital asset oversight protocols.
Moreover, this shift transforms what was once an optional safety feature for individual liquidity providers into a mandatory platform-wide protocol. According to Chain News, one of Binance Taiwan’s C2C liquidity providers, “This function used to be optional for protecting suppliers. Now it's mandatory to avoid money laundering controversies.”
Such proactive measures not only enhance trust but also position Binance as a responsible actor in the maturing digital asset ecosystem.
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Frequently Asked Questions (FAQ)
What is the T+1 withdrawal policy on Binance?
The T+1 policy requires users who buy crypto via C2C trading to wait 24 hours before withdrawing an amount equivalent to their recent fiat deposit. This delay helps prevent rapid movement of potentially suspicious funds.
Does the T+1 rule apply to all currencies on Binance?
Currently, the policy applies specifically to certain fiat currencies, including New Taiwan Dollar (TWD) and Euro (EUR). It may expand to other fiat pairs based on regulatory needs.
Can I still trade during the 24-hour holding period?
Yes. While withdrawals of newly acquired crypto (in BTC value) are restricted, you can freely trade, convert, or transfer funds within your Binance account.
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Is my money safe during the lock-up period?
Absolutely. Your assets remain securely held in your account. The restriction only limits off-platform withdrawals of newly purchased crypto equivalent to your fiat deposit.
Why is Binance implementing stricter rules now?
In response to rising global AML requirements, exchanges are adopting stronger safeguards. The goal is to deter illicit activity while maintaining a trustworthy environment for legitimate users.
Does this affect credit card purchases too?
No. The T+1 rule currently only applies to C2C/P2P trades involving supported fiat currencies like TWD and EUR—not instant buys via credit card or other direct payment methods.
The Bigger Picture: Security Over Speed
While some users may perceive withdrawal delays as inconvenient, such policies are becoming standard across regulated financial platforms—not just in crypto. Traditional banks often hold checks for several days; securities trades settle on T+2 or longer.
Crypto exchanges like Binance are now adopting similar models to meet institutional-grade compliance standards. This evolution signals maturity in the industry: prioritizing long-term trust over short-term convenience.
Furthermore, protecting liquidity providers—the backbone of P2P markets—is essential. By reducing exposure to chargebacks, fraud, and regulatory penalties, Binance strengthens its entire C2C ecosystem.
Final Thoughts: Compliance as a Competitive Advantage
As governments worldwide tighten oversight on digital assets, exchanges that proactively implement robust AML measures gain a strategic edge. Binance’s expansion of the T+1 withdrawal policy to TWD and EUR markets isn’t just about risk mitigation—it’s about building sustainable infrastructure for mainstream adoption.
Users benefit from increased platform integrity, reduced scam risks, and greater confidence in cross-border transactions. For serious investors and casual traders alike, these changes represent progress toward a safer, more transparent crypto economy.
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As the line between traditional finance and decentralized systems continues to blur, expect more innovations that blend regulatory alignment with user empowerment—ushering in a new era of responsible digital asset management.