Crypto exchange KuCoin has officially declared its proposed KYC policy upgrade on June 28, in an effort to better comply with international anti-money laundering regulations.
KYC Compulsory for New Accounts on KuCoin
As per the reports, starting July 15, 2023, everyone who registers at KuCoin will be subject to compulsory KYC checks as a result of the KYC verification change. Global bitcoin users will be affected by the upcoming KYC change.
According to the company, new customers won’t be able to utilize KuCoin’s range of products and services until they are done with the KYC process. Those with an account who signed up before July 15, 2023, will also need to finish the KYC procedure in order to enjoy specific KuCoin features.
Existing Users will have Access to Certain Features
Existing KuCoin users will still have access to features including sell orders for spot trading, margin trading deleveraging, and futures trading deleveraging, as per a report.
Existing non-KYC users can also redeem their coins through KuCoin Earn, the staking and lending gateway for the cryptocurrency, as well as redeem their exchange-traded fund holdings.
“Typically, we require customer identification information including information on the customer’s name and further identifiers such as a physical address, date of birth, and national ID number,” KuCoin CEO Johnny Lyu said.
20 Million Users Registered on KuCoin in July 2022
According to KuCoin, the number of registered accounts on its network as of July 2022 was over 20 million. Additionally, according to data from CoinGecko, it receives over 8 million visits every month and has trading volumes of about $540 million.
An Industry Trend
Many cryptocurrency exchanges have lately tightened their KYC requirements in an effort to shield their customers from fraudulent activity. However, Kaspersky predicted in November of last year that by 2023, hackers would be leveraging the Metaverse to attack unwary customers.
Furthermore, phishing attacks increased 40% from the prior year in 2022, according to a research released in April of this year by the same cybersecurity company.