In a bid to bolster its compliance with global Anti-Money Laundering (AML) regulations, leading cryptocurrency exchange KuCoin has announced a forthcoming upgrade to its Know Your Customer (KYC) system. The implementation of mandatory KYC checks for all new users will commence on July 15, 2023.
According to KuCoin’s official announcement on June 28, new users who fail to complete the KYC process will be unable to access the exchange’s range of products and services. Additionally, existing users who registered prior to July 15, 2023, will also be required to complete the KYC authentication in order to access certain features, though withdrawals will remain unaffected.
To fulfill the KYC requirements, users will be asked to provide personal information such as their name, identification number, and identification photo, along with undergoing facial recognition. KuCoin’s CEO, Johnny Lyu, explained that the exchange diligently verifies customer identification and verification data, adhering to the applicable laws and regulations of the respective jurisdictions.
Furthermore, KuCoin collects supplementary information pertaining to a customer’s business and risk profile, including trading activity details and the origin of virtual funds deposited.
Lyu emphasized that KYC has always been a fundamental principle upheld by KuCoin, with identity recognition being an integral part of their existing processes. He stressed that the exchange’s KYC policy is designed to align with regulations in the jurisdictions where they operate, as there is currently no unified global KYC regulation.
However, it’s worth noting that KuCoin explicitly stated that it does not support KYC based on the regulations of the United States.
KuCoin: A Prominent Crypto Exchange with Impressive Trading Volumes
In the realm of cryptocurrency exchanges, KuCoin has emerged as a significant player, boasting remarkable trading volumes. According to the latest data from CoinGecko, KuCoin stands among the largest crypto exchanges globally, facilitating approximately $540 million in daily trading. Additionally, this exchange attracts over 8 million visitors on a monthly basis, further solidifying its position in the market. To provide context, it is worth noting that Kraken, a major United States-based exchange, witnesses around 5 million monthly visits and trades cryptocurrencies worth approximately $380 million daily.
Recent times have witnessed a surge in Know Your Customer (KYC) policies adopted by numerous cryptocurrency exchanges. In May, Bybit exchange joined the trend by imposing restrictions on non-KYC users, limiting their monthly withdrawals to 20,000 Tether. The purpose behind these stringent measures is to enhance security and compliance within the industry. However, there have been unintended consequences as cybercriminals have seized the opportunity created by KYC requirements. It has been reported that hacked and verified crypto accounts are being illicitly sold on the darknet for as little as $30, as of April 2023.