Starting July 15th, all customers will have to complete new identity checks to access an array of services.
KuCoin, a significant player in the crypto exchange landscape, has taken the lead in strengthening its Know Your Customer (KYC) protocols.
The move comes as part of the crypto exchange's strategy to amplify adherence to global Anti-Money Laundering (AML) standards.
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Announced on June 28th, KuCoin's decision to elevate its KYC procedures will necessitate obligatory identity checks for all new users registering from July 15th, 2023. The crypto exchange has made it clear that users registering post this date will have to successfully complete the KYC process to access an array of products and services.
For existing users who joined the platform before July 15th, KYC will also be compulsory to enter certain KuCoin features. According to the announcement, these users will not be permitted to make new deposits, although withdrawal processes will continue as usual.
Non-KYC users will be able to utilize a select range of services like futures trading deleveraging, margin trading deleveraging and spot trading sell orders. The crypto exchange will also allow access KuCoin’s staking, lending hub and exchange-traded fund redemptions, as well as KuCoin Earn.
KuCoin CEO, Johnny Lyu, outlined the motivations behind the change, stating:
As a globalized exchange, KuCoin closely monitors the crypto policies of various countries and respects compliance requirements, providing users with enhanced asset security.
The firm's CEO firmly believes that the revamped KYC system will bolster the platform's compliance and contribute to securing all cryptocurrency users' assets. Lyu further commented:
With the development of the cryptocurrency industry, crypto has gradually moved from a geek toward mass adoption. However, this process has also brought about certain security issues concerning on-chain assets.
The updated KYC policy is poised to impact a considerable segment of the global crypto user base, considering that KuCoin had reported over 20 million registered accounts in July 2022. This move mirrors a broader industry trend as other crypto exchanges like Bybit have also strengthened their KYC measures.
While it represents a significant stride towards user asset security, the development comes with risks as cybercriminals have reportedly begun to trade hacked and verified crypto accounts on the darknet.
