KuCoin crypto exchange to introduce mandatory KYC in July

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 improve 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 will be unable to entry KuCoin’s suite of services and products, the agency mentioned.

Current customers who registered earlier than July 15, 2023, may also have to full the KYC course of to entry some options on KuCoin. Such customers will be unable to deposit new funds, whereas withdrawals will stay unaffected, the announcement notes.

KuCoin’s present 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 present non-KYC customers embrace redemptions at KuCoin’s staking and lending hub, KuCoin Earn, in addition to exchange-traded funds’ redemption.

“A whole KYC course of requires customers to present their identify, identification quantity, and identification picture, and bear facial recognition,” KuCoin CEO Johnny Lyu instructed Cointelegraph. The CEO famous that KuCoin brains and verifies the client identification and verification knowledge required underneath the legal guidelines and laws of relevant jurisdictions. He said:

“Sometimes, we require buyer identification data together with data on the client’s identify and additional identifiers similar to a bodily handle, date of start, and nationwide ID quantity.”

Pursuant to the necessities of the legal guidelines and laws of relevant jurisdictions, KuCoin additionally collects further data associated to the client’s enterprise and threat 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 at all times adhered to,” including that identification recognition is an present course of. Lyu additionally pressured 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 assist 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 big 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 also 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 check, main United States-based exchange Kraken has about 5 million visits per 30 days, with about $380 million value of crypto traded day by day.

Another cryptocurrency exchanges have been rising their KYC insurance policies not too long ago as nicely. In Could, 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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