Major cryptocurrency exchange KuCoin is working to strengthen its Know Your Customer (KYC) system by introducing new mandatory identity checks.
On June 28, KuCoin officially announced the upcoming KYC system upgrade in a move to increase compliance with global Anti-Money Laundering regulations.
The KYC authentication upgrade introduces mandatory KYC checks for all new users at KuCoin starting from July 15, 2023. Without completing KYC, newly registered users will not be able to access KuCoin’s suite of products and services, the firm said.
Existing users who registered before July 15, 2023, will also have to complete the KYC process to access some features on KuCoin. Such users will not be able to deposit new funds, while withdrawals will remain unaffected, the announcement notes.
KuCoin’s existing users will still be able to use services like spot trading sell orders, futures trading deleveraging and margin trading deleveraging. Other available services for existing non-KYC users include redemptions at KuCoin’s staking and lending hub, KuCoin Earn, as well as exchange-traded funds’ redemption.
“As a globalized exchange, KuCoin closely monitors the crypto policies of various countries and respects compliance requirements, providing users with enhanced asset security,” KuCoin CEO Johnny Lyu stated. He said that KuCoin’s new KYC system will not only increase the platform’s compliance, but also help better protect the “asset security of all cryptocurrency users.”
“With the development of the cryptocurrency industry, crypto has gradually moved from a geek toward mass adoption. However, this process has also brought about certain security issues concerning on-chain assets.”
KuCoin didn’t immediately respond to Cointelegraph’s request to comment on whether the new KYC system applies to all users and details about its current KYC requirements. This article will be updated pending further information.
The new KYC update will affect a significant number of cryptocurrency users worldwide. KuCoin says it had over 20 million registered accounts on its platform as of July 2022.
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KuCoin is also one of the world’s largest crypto exchanges by trading volumes. At the time of writing, KuCoin’s daily trading volumes amount to around $540 million, with more than 8 million monthly visits, according to data from CoinGecko. To compare, major United States-based exchange Kraken has about 5 million visits per month, with about $380 million worth of crypto traded daily.
Some other cryptocurrency exchanges have been increasing their KYC policies recently as well. In May, Bybit exchange restricted non-KYC users from withdrawing more than 20,000 Tether (USDT) monthly. Cybercriminals have capitalized on KYC requirements, reportedly selling hacked and verified crypto accounts on the darknet for $30 as of April 2023.
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