KuCoin Implements Mandatory KYC Requirements Starting July, Enhancing Security Measures

Leading cryptocurrency exchange KuCoin is taking proactive steps to enhance its Know Your Customer (KYC) procedures by introducing compulsory identity verification checks.

On June 28, KuCoin officially announced its plans to upgrade the KYC system, aiming to bolster compliance with global Anti-Money Laundering (AML) regulations.

Starting from July 15, 2023, all new users registering on KuCoin will be required to undergo mandatory KYC checks. Failure to complete the KYC process will result in restricted access to KuCoin’s range of products and services, according to the firm.

Existing users who registered before July 15, 2023, will also be required to complete the KYC process to access certain features on the platform. While withdrawals will remain unaffected, these users will not be able to deposit new funds, as stated in the announcement.

KuCoin’s existing users will still have access to services such as 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, even without completing the KYC process.

Johnny Lyu, the CEO of KuCoin, explained to CryptoGrafos that the complete KYC process involves providing personal information like name, identification number, and identification photo, as well as undergoing facial recognition. Lyu emphasized that KuCoin meticulously verifies customer identification data in accordance with the laws and regulations applicable in different jurisdictions. He stated:

“In general, we require customers to provide identification information such as their name, physical address, date of birth, and national ID number.”

To comply with jurisdictional regulations, KuCoin also collects additional information concerning customers’ business and risk profile, including the nature and volume of trading activity and the origin of virtual funds deposited, added Lyu.

The CEO affirmed that KYC has always been a core principle at KuCoin, highlighting that identity verification is an established process. He further underscored that KuCoin has set its KYC policy to align with the regulations of applicable jurisdictions, given the absence of a unified global KYC regulation.

The introduction of the new KYC update will impact a substantial number of cryptocurrency users worldwide. As of July 2022, KuCoin reported over 20 million registered accounts on its platform.

With daily trading volumes reaching approximately $540 million and more than 8 million monthly visits, KuCoin is among the largest cryptocurrency exchanges globally, according to CoinGecko data. By comparison, major U.S.-based exchange Kraken records about 5 million monthly visits and daily crypto trades worth approximately $380 million.

Other cryptocurrency exchanges have also been reinforcing their KYC policies in recent times. In May, Bybit exchange restricted non-KYC users from withdrawing more than 20,000 Tether per month. Furthermore, cybercriminals have exploited KYC requirements, reportedly selling hacked and verified crypto accounts on the darknet for $30 as of April 2023.

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