Main cryptocurrency exchange KuCoin is working to strengthen its Know Your Customer (KYC) system by introducing new mandatory identification checks.
On June 28, KuCoin formally introduced the upcoming KYC system improve in a transfer to enhance compliance with international Anti-Cash Laundering laws.
The KYC authentication improve introduces mandatory KYC checks for all new customers at KuCoin ranging from July 15, 2023. With out finishing KYC, newly registered customers won’t be able to entry KuCoin’s suite of services, the agency mentioned.
Current customers who registered earlier than July 15, 2023, can even have to full the KYC course of to entry some options on KuCoin. Such customers won’t be able to deposit new funds, whereas withdrawals will stay unaffected, the announcement notes.
KuCoin’s current customers will nonetheless have the ability to use providers like spot buying and selling promote orders, futures buying and selling deleveraging and margin buying and selling deleveraging. Different obtainable providers for current non-KYC customers embrace redemptions at KuCoin’s staking and lending hub, KuCoin Earn, in addition to exchange-traded funds’ redemption.
“An entire KYC course of requires customers to present their identify, identification quantity, and identification photograph, and endure facial recognition,” KuCoin CEO Johnny Lyu informed Cointelegraph. The CEO famous that KuCoin brains and verifies the shopper identification and verification knowledge required beneath the legal guidelines and laws of relevant jurisdictions. He acknowledged:
“Usually, we require buyer identification info together with info on the shopper’s identify and additional identifiers equivalent to a bodily tackle, date of beginning, and nationwide ID quantity.”
Pursuant to the necessities of the legal guidelines and laws of relevant jurisdictions, KuCoin additionally collects extra info associated to the shopper’s enterprise and danger profile. Threat profile knowledge consists of nature and quantity of buying and selling exercise, origin of digital funds deposited, Lyu added.
The CEO went on to say that KYC is a precept that “KuCoin has all the time adhered to,” including that identification recognition is an current course of. Lyu additionally confused that KuCoin set their KYC coverage to adjust to laws in relevant jurisdictions since there isn’t a unified international KYC regulation.
“KuCoin doesn’t help the US KYC based mostly on our present KYC or the up to date KYC guidelines,” a spokesperson for KuCoin famous.
The brand new KYC replace will have an effect on a major variety of cryptocurrency customers worldwide. KuCoin says it had over 20 million registered accounts on its platform as of July 2022.
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KuCoin can be one of many world’s largest crypto exchanges by buying and selling volumes. On the time of writing, KuCoin’s day by day buying and selling volumes quantity to round $540 million, with greater than 8 million month-to-month visits, according to knowledge from CoinGecko. To match, main United States-based exchange Kraken has about 5 million visits per thirty days, with about $380 million price of crypto traded day by day.
Another cryptocurrency exchanges have been growing their KYC insurance policies not too long ago as effectively. In Might, Bybit exchange restricted non-KYC customers from withdrawing greater than 20,000 Tether (USDT) month-to-month. Cybercriminals have capitalized on KYC necessities, reportedly selling hacked and verified crypto accounts on the darknet for $30 as of April 2023.
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Cointelegraph by Helen Partz KuCoin crypto exchange to introduce mandatory KYC in July cointelegraph.com 2023-06-28 10:00:00
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