Bybit Exchange to Introduce KYC Rules

Popular cryptocurrency derivatives exchange Bybit is preparing to implement Know Your Customer (KYC) rules to improve the compliance of the platform.

While it remains unknown when the new rules will be implemented, Bybit has already posted two statements on its website introducing the new KYC policies, which have been divided for individual and business accounts. The exchange’s customers can still choose to forgo the KYC procedure, but their daily withdrawal limit will be set at 2 BTC. Bybit’s KYC statements read:

“KYC guidelines for financial services require that professionals make an effort to verify the identity, suitability and risks involved, in order to minimize the risk to the respective account. KYC is necessary to improve security compliance for all traders.”

Individual accounts will have two options when it comes to KYC verification levels, with the first being capped at withdrawing 50 BTC a day and requiring name, date of birth, passport or ID issued in the country of origin, and facial recognition screening. To gain the second level, which is capped at 100 BTC a day, customers will also have to present a proof of residential address. Business accounts, on the other hand, will have only one KYC verification level, which is also capped at 100 BTC.

The exchange’s decision to implement KYC rules comes as a no surprise, considering the amount of scrutiny Bybit has seen from financial regulators this year. Back in March, the exchange had to suspend its services for customers in the U.K. due to a blanket ban on retail crypto derivatives trading by the Financial Conduct Authority.

Later, in May, the exchange received a warning by the Japanese Financial Services Agency that it was not registered to operate crypto services in the country. In June, Canada’s Ontario Securities Commission revealed it would be holding a hearing against the exchange, alleging Bybit had violated the country’s securities law.