Seychelles-based crypto exchange KuCoin is pushing for mandatory KYC upgrades as its competitors face regulatory challenges across various jurisdictions.
In a bid to embrace global compliance requirements, KuCoin announced an upgrade of its KYC authentication rules and systems from next month onwards.
Beefing Up KYC Measures
The new rules mandate all newly registered users to complete KYC starting July 15 to access KuCoin’s full suite of products and services to ensure a “high level of accountability and transparency” within the platform. Existing users failing to complete the KYC process will be offered limited access to certain features, the company said in a statement.
As such, spot trading sell orders, futures trading deleveraging, margin trading deleveraging, KuCoin Earn redemption, and ETF redemption will be accessible, but deposit services will be unavailable for users with non-KYC status. Fund withdrawals, on the other hand, will remain unaffected.
KuCoin CEO Johnny Lyu said that the platform has been closely monitoring digital asset policies of various countries and compliance requirements. He went on to add
“With the development of the cryptocurrency industry, crypto has gradually moved from a geek towards mass adoption. However, this process has also brought about certain security issues concerning on-chain assets. In light of this, KuCoin has strengthened our KYC system to comply with regulatory requirements worldwide and better protect the asset security of all users through enhanced KYC rules.”
KuCoin isn’t the only one to roll out mandatory KYC checks in a move to embrace regulation. Dubai-headquartered Bybit also stepped up to reduce risks associated with users’ accounts by introduction mandatory KYC verification for both new and existing users.
Binance’s Alleged KYC Faux Pas
The push for KYC comes amid heightened regulatory scrutiny against crypto giant Binance whose employees and “angels” were reported to have allegedly helped users evade KYC and AML controls earlier this year. This sparked concerns about Binance’s ability to comply with regulations. The exchange issued a statement saying that it was investigating the report shortly after.