KuCoin, a leading cryptocurrency exchange, has announced the introduction of mandatory Know Your Customer (KYC) checks for all new users starting from July 15, 2023. The move aims to strengthen compliance with global Anti-Money Laundering (AML) regulations and enhance the security of user assets.
Under the new KYC system upgrade, newly registered users will be required to complete identity verification before gaining access to KuCoin’s suite of products and services. Existing users who registered before the deadline will also need to undergo the KYC process to access certain features, although withdrawals will not be affected.
Despite the implementation of KYC, existing non-KYC users will still have access to various services on KuCoin, including spot trading sell orders, futures trading deleveraging, margin trading deleveraging, redemptions at KuCoin’s staking and lending hub, KuCoin Earn, and exchange-traded funds’ redemption.
As a globalized exchange, KuCoin is closely monitoring crypto policies worldwide and respecting compliance requirements to provide enhanced asset security for its users. Johnny Lyu, the CEO of KuCoin, highlighted that the new KYC system not only ensures platform compliance but also safeguards the asset security of all cryptocurrency users.
Significance and Impact
KuCoin currently boasts over 20 million registered accounts as of July 2022, making the new KYC measures significant in terms of their impact on the global cryptocurrency community. The exchange is also one of the world’s largest in terms of trading volumes, with daily trading volumes reaching approximately $540 million and more than 8 million monthly visits.
The implementation of stricter KYC policies by KuCoin reflects a broader trend in the industry, with other cryptocurrency exchanges also strengthening their identity verification procedures. Bybit, for example, recently restricted non-KYC users from withdrawing more than 20,000 Tether (USDT) per month.
While the new KYC system’s specific details and applicability to all users are yet to be clarified by KuCoin, the exchange’s proactive approach aligns with efforts to combat cybercriminal activities. Criminals have taken advantage of lax KYC requirements, reportedly selling compromised and verified crypto accounts on the darknet for $30 as of April 2023.
In conclusion, KuCoin’s decision to enforce mandatory KYC checks demonstrates its commitment to enhancing security and regulatory compliance within the cryptocurrency space. By implementing these measures, the exchange aims to protect user assets and contribute to the wider adoption of cryptocurrencies while mitigating associated risks.