KuCoin will be implementing Know Your Customer (KYC) checks, which means that new users will need to complete identity verification in order to access all services. Existing users who have not completed KYC will not be able to make deposits.
KuCoin, a significant cryptocurrency exchange, is enhancing its Know Your Customer (KYC) system by introducing mandatory identity verification checks.
KuCoin made an official announcement on June 28 regarding an upcoming upgrade to its KYC system. The purpose of this upgrade is to enhance compliance with global Anti-Money Laundering regulations.
Starting from July 15, 2023, KuCoin will require all new users to undergo mandatory KYC checks as part of an authentication upgrade. If newly registered users fail to complete the KYC process, they will be unable to access KuCoin’s range of products and services, according to the company.
The announcement states that existing users who registered prior to July 15, 2023, will also need to complete the KYC process to access certain features on KuCoin. However, they will be unable to make new deposits, while withdrawals will not be affected.
Existing users of KuCoin will retain access to various services, including spot trading sell orders, futures trading deleveraging, and margin trading deleveraging. Additionally, non-KYC users will still be able to utilize services such as redemptions at KuCoin’s staking and lending hub, KuCoin Earn, as well as the redemption of exchange-traded funds.
KuCoin CEO Johnny Lyu emphasized that as a global exchange, KuCoin diligently follows the crypto policies of different countries and prioritizes compliance to ensure enhanced asset security for users. He further explained that the new KYC system implemented by KuCoin aims to improve compliance measures and safeguard the asset security of all cryptocurrency users.
Lyu also mentioned that as the cryptocurrency industry evolves, it is transitioning from being niche to gaining mass adoption. However, this shift has raised security concerns related to on-chain assets.
The upcoming KYC update will impact a large number of cryptocurrency users globally. KuCoin has reported having more than 20 million registered accounts on its platform as of July 2022.
KuCoin is recognized as one of the largest cryptocurrency exchanges globally in terms of trading volumes. As of now, KuCoin’s daily trading volumes reach approximately $540 million, and it receives over 8 million visits on a monthly basis, based on CoinGecko data. To provide a comparison, a prominent U.S.-based exchange called Kraken sees around 5 million monthly visits and facilitates daily crypto trading worth approximately $380 million.
Several other cryptocurrency exchanges have also been strengthening their KYC policies in recent times. For instance, in May, Bybit exchange implemented restrictions on non-KYC users, limiting their monthly withdrawals to no more than 20,000 Tether USDT tokens valued at $1.00 each. Unfortunately, cybercriminals have taken advantage of these KYC requirements, as there have been reports of hacked and verified crypto accounts being sold on the darknet for approximately $30 as of April 2023.
Important:Â This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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