KuCoin to Introduce Mandatory KYC Checks in July
- The updated KYC checks will be introduced on 15 July, after which new users will be required to complete the process in order to gain full access to the exchange’s services.
- Existing users who fail to complete the KYC checks will face limitations on the platform, such as being unable to deposit new funds and only having access to certain services.
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Major cryptocurrency exchange KuCoin is set to introduce mandatory know-your-customer (KYC) checks for all of its clients starting next month, the company said in a press release on 28 June.
According to the announcement, the upcoming KYC system upgrade will not only help KuCoin embrace global Anti-Money Laundering (AML) requirements, but also foster a safer trading environment for all of its users. The new KYC process will be implemented on 15 July, and will be mandatory for new users who wish to have full access to KuCoin’s suit of products and services. The CEO of KuCoin, Johnny Lyu, said in a statement:
“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 cryptocurrency users through enhanced KYC rules.”
Existing users who do not complete the KYC process after 15 July will also face limitations on the platform. Although withdrawals will remain unaffected, such users will not be able to deposit new funds, and only use services such as spot trading sell orders, futures trading deleveraging, margin trading deleveraging, KuCoin Earn redemptions, and ETH redemptions.
The decision to update KuCoin’s KYC policy comes amid a regulatory crackdown in the U.S., where cryptocurrency exchanges Binance and Coinbase were both sued by the Securities and Exchange Commission (SEC). The Commodity Futures Trading Commission also accused Binance of helping VIP customers evade both IP address and KYC documentation compliance controls.
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Former CEO of FTX Sam Bankman-Fried leaves the Federal Court in New York after pleading not guilty, 3 January, 2022.
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- The level-1 KYC process requires users to submit a government identification and undergo facial authentication, and is in line with global regulatory guidelines.