KuCoin, a major cryptocurrency exchange, will require all users to undergo mandatory know-your-customer (KYC) procedures before July 15, 2023.
This move comes amidst heightened regulatory scrutiny, including the case involving Binance and the U.S. Commodity Futures Trading Commission.
According to its announcement on June 28th, to bolster its security system and also to enhance user experiences on the platform, KuCoin is implementing stricter identity verification measures.
🚨 IMPORTANT: In order to protect users' assets and combat money laundering, terrorist financing and related financial crimes around the world, #KuCoin will enhance our #KYC requirements.— KuCoin (@kucoincom) June 28, 2023
From July 15, 2023 (UTC):
📌 Newly registered users must complete their KYC in order to use… pic.twitter.com/oTZULNqAxd
“KuCoin has strengthened our KYC system to comply with regulatory requirements worldwide and better protect the asset security of all cryptocurrency users through enhanced KYC rules,” Johnny Lyu, CEO of KuCoin, emphasized.
Compulsory KYC Requirements Introduced for New Users on KuCoin
Users who fail to complete KYC on KuCoin will face restrictions, including limited access to spot trading sell orders, futures trading deleveraging, margin trading deleveraging, “earn” product redemptions, and ETF redemptions.
Existing users registered before July 15, 2023, must undergo KYC to access certain features. Depositing new funds will be prohibited for these users, but withdrawals will continue as usual, according to the announcement.
“As people’s exchange, KuCoin has always prioritized the security of users’ assets. As a globalized exchange, KuCoin closely monitors the crypto policies of various countries and respects compliance requirements, providing users with enhanced asset security.
However, with the development of the cryptocurrency industry, crypto has gradually moved from a geek towards mass adoption. However, this process has also brought about specific security issues concerning on-chain assets,” Lyu said.
Lyu explained that users must provide their name, identification number, and identification photo and undergo facial recognition for the complete KYC process. This ensures compliance with relevant laws and regulations regarding customer identification and verification.
As users provide more information to complete their profiles, KuCoin will offer a broader range of platform products and services. This includes higher daily withdrawal limits, comprehensive trading tools, and a greater variety of user activities.
The platform recommends users stay updated by regularly reviewing its announcements for the most recent updates. This policy adjustment demonstrates KuCoin’s dedication to aligning with regulatory frameworks and its resolve to offer a secure trading environment for its users.
By implementing more stringent KYC procedures, the exchange aims to bolster its safeguards against financial crimes and elevate the overall integrity of its platform.
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