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KuCoin to Require KYC Verification for All Users Starting from July

Summary:
KuCoin CEO noted that the increased adoption of cryptocurrency has pushed the number of related security issues higher. Leading cryptocurrency exchange KuCoin has introduced additional checks to its KYC verification process. In a bid to comply with global anti-money laundering regulations, the firm announced the KYC system upgrade on June 28. As part of the upgrade, all new users will have to complete mandatory identity checks from July 15. Without this, such users will not have access to the firm’s suite of products. In the same manner, existing users will not be able to make deposits to the platform without additional verification. However, they will have access to other features like buying and selling, trading with less risk, and getting rewards. According to KuCoin CEO, Johnny

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KuCoin CEO noted that the increased adoption of cryptocurrency has pushed the number of related security issues higher.

Leading cryptocurrency exchange KuCoin has introduced additional checks to its KYC verification process. In a bid to comply with global anti-money laundering regulations, the firm announced the KYC system upgrade on June 28. As part of the upgrade, all new users will have to complete mandatory identity checks from July 15. Without this, such users will not have access to the firm’s suite of products.

In the same manner, existing users will not be able to make deposits to the platform without additional verification. However, they will have access to other features like buying and selling, trading with less risk, and getting rewards.

According to KuCoin CEO, Johnny Lyu, the increased adoption of cryptocurrency has pushed the number of related security issues higher. He said:

“As a globalized exchange, KuCoin closely monitors the crypto policies of various countries and respects compliance requirements, providing users with enhanced asset security.”

  Likewise, Lyu noted that the new KYC verification progress will improve the company’s compliance will global regulations. He also stated that it would guarantee better protection for investors. At the time of the announcement, KuCoin had about 27 million registered accounts.

KYC Verification Upgrade: Spreading Phenomenon

KuCoin is not the only crypto exchange enhancing its KYC policy to comply with global regulations and prevent financial crimes. According to a Reuters report, several exchanges have embraced similar policies in the face of enforcement actions by regulators for their AML compliance.

For example, Binance recently implemented stricter KYC measures for its users, limiting funds withdrawals and preventing access to its platform from specific countries. Also, Coinbase has partnered with law enforcement agencies and regulators to share customer data and transaction information. In May, Bybit also restricted non-KYC users from withdrawing more than 20,000 Tether.

With cyber criminals exploiting security lapses around on-chain assets, these moves show that the crypto exchanges understand the value of KYC for crypto and the risks of non-compliance. Katarzyna Kazimierczak-Mrowinska, the CEO of Authenteq, noted in the article for Forbes that by implementing KYC technology in a way that respects user privacy and security, we can create a more trustworthy and sustainable crypto ecosystem.

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Babafemi Adebajo

An experienced writer with practical experience in the fintech industry. When not writing, he spends his time reading, researching or teaching.

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