Binance Nightmare: I have two accounts. Binance told me I have to destroy one of them permanently

[Jester_Crypto]

Describe the problem:
I have two accounts with Binance. One was verified and the other wasn’t. Binance has now implemented a rule where accounts are effectively useless without verification and only one account can be verified per user.

I went to transfer all my funds from one account to the other and I can’t.

I asked Binance support what I should do and they effectively told me I have to submit a request (in video format) for them to destroy one of my accounts. Basically they’re telling me to transfer funds from the verified to the non-verified and then request that the verified be destroyed so I can later request that the non-verified be verified.

Naturally, this scares the living daylights out of me and the way it was worded, in the broken English even moreso.

What does this have to do with Koinly? Well, for me to access my funds, I have to destroy one of my accounts, thus destroy the records along with it (confirmed by the support team). So to access half of my capital, I have to make it impossible to file a tax return.

Here is the message Binance support sent me:

"thank you for waiting dear user. Kindly provide a video, in which you needs to hold your ID document and repeat this exactly phrase clearly : “Today is date/month/year, I apply to reset the KYC on my verified account ([email protected]) and I agrees that Binance can disable the old account permanently. I also apply to verify the current account ([email protected])”

Question: What am I supposed to do? I feel terrified by the instructions given and worry I could lose everything and also have no records to pass to my tax department.

Please don’t fixate on the fact I had two accounts. What’s done is done.

[Nazario_Mastroianni]

It might depend on where you live, but it is generally not illegal to buy crypto anonymously (e.g. p2p or via an exchange without KYC), so you don’t need to justify yourself for having multiple accounts. Now, I am speculating, so take what I say with a grain of salt, but I don’t think you are legally required to provide more than a trustful report of your transactions, i.e. the transaction history that you can still download from Binance (make sure it contains everything, including addresses you have deposited to/withdrawn from and transaction hashes). If the tax agency wants to audit you, they might ask you for your public addresses, and from there track all the transactions that were made to it: they should be perfectly able to see that you moved funds from a secondary Binance account that belonged to you. Unless you are using some privacy coin (and even there, you’re within your rights), blockchains are public: it is easy to check whether your statement is truthful, by checking dates and amounts. Just to be extra safe, you might also record this conversation you’re having with their support team and keep the email address/phone number associated to that account, but I hardly doubt that you can be considered legally responsible for how an exchange handles its transaction records.