KuCoin, a major cryptocurrency exchange, has announced that it will implement mandatory Know Your Customer (KYC) checks beginning from July 15, 2023.
🚨 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.
From July 15, 2023 (UTC):
📌 Newly registered users must complete their KYC in order to use… pic.twitter.com/oTZULNqAxd— KuCoin (@kucoincom) June 28, 2023
This decision, announced on Wednesday, signifies a policy change aimed at addressing regulatory concerns and enhancing customer security on the platform.
Starting from the aforementioned date, all new customers looking to use KuCoin’s services will be required to complete a KYC process.
Furthermore, existing users who fail to undergo the KYC procedure will be unable to conduct trades or make deposits on the platform.
With over 27 million users as of the end of 2022 and a 24-hour trading volume of $531 million, KuCoin is one of the world’s largest cryptocurrency exchanges.
This measure comes amid increasing criticism of crypto exchanges over perceived lax KYC checks. Regulators have long voiced concerns that insufficient identity verification processes could potentially fuel illicit activities such as fraud, money laundering, and terrorist financing.
By introducing mandatory KYC checks, KuCoin aims to address these issues and bolster the integrity of its platform.
However, the implementation of mandatory KYC checks also raises questions about user privacy and the traditional values of the crypto industry, which has often prized anonymity and decentralization.
The balance between regulatory compliance, customer security, and the preservation of these values is a continuous challenge for crypto exchanges.
Interestingly, KuCoin isn’t the only exchange strengthening its KYC policies. In May, Bybit exchange restricted non-KYC users from withdrawing more than 20,000 Tether (USDT) monthly. This has led to a surge in the sale of hacked and verified crypto accounts on the darknet, reportedly selling for $30 as of April 2023.
