Binance has introduced a new cryptocurrency, but it is not one you have probably seen before. Binance Account Bound (BAB) is a token now being given away to users who have completed a KYC (Know Your Customer) verification process.
Users must submit legal documents to verify their identity as part of Binance’s KYC (Know Your Customer) verification process, a requirement that most centralized exchanges must meet to be operational in their respective countries today.
Binance Account Bound (BAB) For KYC Verified Users
Binance has officially launched the Binance Account Bound (BAB) token, a cryptocurrency that falls under the Soulbound Token, or SBT, and will act as proof of identity for users who have completed their KYC verification. This announcement on 2022-09-08 at 09:00 (UTC) surprised the cryptocurrency community.
Introducing the #Binance Account Bound BAB Token, the first-ever Soulbound Token on @BNBCHAIN!
BAB tokens are non-transferable tokens that work as identity credentials for Binance users who have completed KYC verification.
Find out more ➡️ https://t.co/03TKuyXZBC pic.twitter.com/BKSWnM4jJL
— Binance (@binance) September 8, 2022
The Binance Account Bound (BAB) token was launched on the BNB Chain blockchain. According to the exchange, many projects have already committed to using the BAB token as a form of community identification.
A user can use their BAB verification token after getting it on Binance to participate in developing and building new projects on the BNB blockchain. Binance will disclose other uses shortly.
Soulbound Token: A New Category of Token For A Decentralized Society
Back in May 2022, Vitalik Buterin, the founder of Ethereum (ETH), introduced the Souldbound Token, or SBT, a non-fundable, non-transferable token to set up a decentralized company. These are special identification tokens designed for use in the crypto community.
Similar to what Buterin proposed, BAB tokens are also not transferrable, according to Binance, since users cannot transfer BAB tokens to other users. Secondly, they are revocable as users can cancel their BAB tokens. They are also unique since only one verified Binance user ID could mint one BAB token on a given chain.
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