Why is CPF balance and work details needed for Binance SG?

I think it might be for Know Your Customer (KYC)/Anti Money Laundering (AML) purposes. Cryptocurrencies, due to their decentralised nature, can easily be used for money laundering and financing of criminal activites. As such, crypto exchanges have to verify the details of their clients before allowing them to use their services. By verifying your CPF balance and work details, they will be able to more accurately assess if you're using legitimate and legal funds in your account or ill-gotten gains.

Let's say, if you're earning 2k/month and you're 24, it might raise a red flag to them if you suddenly deposit 500k SGD into your binance account for crypto purchases or trades. This can allow them to do a deeper investigation to determine if it's any cause for concern. If after investigating, they realise that oh, it's from an inheritance, then there's nothing more for them to investigate.