Major Cryptocurrency Exchange KuCoin Implements Mandatory KYC
Major cryptocurrency exchange KuCoin is working to strengthen its Know Your Customer (KYC) system by introducing new mandatory identity checks.
On June 28, KuCoin officially announced the upcoming KYC system upgrade in a move to increase compliance with global Anti-Money Laundering regulations.
Introduction of Mandatory KYC Checks
The KYC authentication upgrade introduces mandatory KYC checks for all new users at KuCoin starting from July 15, 2023. Without completing KYC, newly registered users will not be able to access KuCoin’s suite of products and services, the firm said.
Existing users who registered before July 15, 2023, will also have to complete the KYC process to access some features on KuCoin. Such users will not be able to deposit new funds, while withdrawals will remain unaffected, the announcement notes.
Services Available for Existing Non-KYC Users
KuCoin’s existing users will still be able to use services like:
- Spot trading sell orders
- Futures trading deleveraging
- Margin trading deleveraging
- Redemptions at KuCoin’s staking and lending hub, KuCoin Earn
- Exchange-traded funds’ redemption
According to KuCoin CEO Johnny Lyu, the complete KYC process requires users to provide their name, identification number, and identification photo, and undergo facial recognition. KuCoin ensures customer identification and verification data are compliant with applicable jurisdictions’ laws and regulations.
KuCoin also collects additional information related to the customer’s business and risk profile, including nature and volume of trading activity and origin of virtual funds deposited.
Global Impact and Trading Volumes
The new KYC update will affect a significant number of cryptocurrency users worldwide. KuCoin reports having over 20 million registered accounts on its platform as of July 2022.
KuCoin is one of the world’s largest crypto exchanges by trading volumes. As of now, KuCoin’s daily trading volumes amount to around $540 million, with more than 8 million monthly visits, according to data from CoinGecko. In comparison, major United States-based exchange Kraken has about 5 million visits per month, with about $380 million worth of crypto traded daily.
Similar to KuCoin, other cryptocurrency exchanges have been increasing their KYC policies recently. In May, Bybit exchange restricted non-KYC users from withdrawing more than 20,000 Tether (USDT) monthly.
Cybercriminals have taken advantage of KYC requirements, reportedly selling hacked and verified crypto accounts on the darknet for $30 as of April 2023.
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