KuCoin announces important changes to enhance user security. According to the latest news, starting this July, a mandatory Know Your Customer (KYC) procedure will apply to all new users who wish to use the exchange’s services.
Important change for current and future KuCoin users
The KYC update, which goes into effect on July 15, 2023, is designed to comply with global regulations that address anti-money laundering. As a result, new users will have to undergo identity verification by providing their personal information, identifying photos and submitting to facial recognition. Without completing the KYC process, newly registered users will not have access to the full suite of services offered by KuCoin.
Even current users who registered before this date will be required to complete the KYC process in order to retain full account functionality. The effect of this will be that deposits of funds for unverified users will be unavailable, although withdrawals will still be possible.
Despite the changes, existing KuCoin users will not be completely deprived of access to platform features. They will still be able to use services such as spot sell orders and leveraged futures trading. They will also maintain access to margins to secure their transactions. Opportunities to use services such as staking, KuCoin Earn loans and exchange-traded funds will still remain active.
KuCoin is leaving the wild west
The introduction of the new rules has been met with some controversy. KuCoin, given the different jurisdictions, insists that the KYC rules do not apply in the United States. In addition, a number of cryptocurrency exchanges have recently tightened their KYC rules. In May, the Bybit exchange introduced a withdrawal limit of $20,000T per month for users without KYC.
KuCoin, with more than 20 million registered accounts on the platform, is one of the largest cryptocurrency exchanges in the world in terms of trading volume. KuCoin’s daily turnover is around $540 million, and more than 8 million users visit the platform every month.
Security or transparency?
The conclusions reported by the exchange’s representatives seem clear. KuCoin is focused on ensuring greater security and compliance. The introduction of mandatory KYC on the platform is another step to protect users and ensure fair and transparent cryptocurrency trading. On the other hand, it is also taking care of business. As we know, the lack of mandatory KYC makes it difficult for cryptocurrency platforms to operate legally in many jurisdictions, and as a result, they limit their own earning potential.