- KuCoin, the major Cryptocurrency Exchange, introduced a new mandatory identity check for all its users.
- Unverified users will not be able to make deposits after 15 July 2023, announced KuCoin on 28 June 2023.
KuCoin has around 27 million users by the end of 2022 and is one of the largest crypto exchanges with approximately $531 million trading volume.
KuCoin is working on its identity check policies to strengthen its Know Your Customer (KYC) system. On June 28, it announced making KYC mandatory for all users to avail of Kucoin’s services. The step is taken to upsurge compliance with global Anti-Money Laundering regulations.
KYC is a process that helps in identifying and verifying the customer’s identity while opening an account or offering any service. In the Crypto market, KYC regulations will help institutions in reducing identity theft and fraud by verifying the key data of customers.
The new KYC rule
From 15 July 2023, it would be mandatory for KuCoin users to register their KYC. The newly registered users will not be able to access the services and products of the exchange without a KYC check. It is also mandatory for KuCoin’s existing users to complete the KYC procedure to access the services. The existing users will be allowed to make withdrawals but the deposits will be ended for the non-verified users.
Without KYC, the existing users will be allowed to avail of specific services including margin trading deleveraging, futures trading deleveraging, ETF redemptions, KuCoin Earn, Earn redemptions and spot trading sells orders.
“We are making an effort to meet global Anti-Money Laundering regulations along with ensuring the safety of the user’s asset”, stated Johnny Lyu, KuCoin’s CEO. He also ensured that the assets of the users will remain secure during the upgrade process.
Completing the KYC process will require the user’s name, identification photo, identification number, and facial recognition and will contribute to KuCoin in verifying the users.
“Working as the laws and legislations will help KuCoin in offering more secure and reliable services”, stated Johnny Lyu.
The idea of KYC process adaptation was not new to KuCoin as the cryptocurrency exchange initiated introducing KYC checks in 2018. However, the procedure was not compulsory at that time, and withdrawal limits were placed on non-verified customers.
At present, KYC measures emerge as a universal feature of most financial institutions and centralized cryptocurrency exchanges. The process simply requires the users to submit their ID proof as well as identifying information for verification.
The accomplishment of KYC will not only help the users in enjoying high-quality and trustworthy services but also ensure the security of the account and related funds. The process ensures the high-level security of the assets and safeguards the account from any kind of illegal actions or fraud.
Conclusion
The announcement of KuCoin for KYC verification ensured the focus of KuCoin on global Anti-Money Laundering regulations. Non-verified users will not be able to make withdrawals in KuCoin after 15 July 2023. However, there will be no impact of the update on the existing users and the withdrawal process and users will be allowed to withdraw amounts to a specific limit. Offering high-quality services and protecting the user’s assets from any kind of fraud or illegal action is one of the main reasons behind the announcement.
