KuCoin will Begin Mandatory KYC Checks in July
- KuCoin has an impressive user base of around 20 million.
- Existing non-KYC KuCoin users will not be allowed to deposit after July 15 but can make withdrawals.
- Other crypto exchanges, like Bybit, are slowly making KYC checks a mandatory part of their operations.
- Some KuCoin users expressed their disappointment at the new policy, noting that they were uncomfortable sharing their identities.
Users of the crypto exchange KuCoin will face increased scrutiny starting in July as the exchange is set to introduce mandatory Know Your Customer (KYC) checks. The new policy, which kicks off on July 15, will apply to both old and new users.
Existing users who have not completed KYC checks by July 15 will not be allowed to use the exchange’s services, such as making deposits, spot trading, margin trading deleveraging, and futures trading deleveraging.
However, these users will be allowed to withdraw and access services such as redemptions at KuCoin Earn, KuCoin’s lending and staking hub. In addition, new users would have to complete the KYC process to use the exchange’s services.
“Protecting customers’ assets is our primary duty. We will timely update the KYC requirements and corresponding limits according to the relevant legal obligations and integrate them with the properties of various products and network environments. Please pay attention to our announcements on the platform so that you can consistently be informed of the latest information,” KuCoin wrote in a blog post.
KuCoin CEO Johnny Lyu explained that to complete the KYC process, users will have to provide details such as “their name, identification number, and identification photo, and undergo facial recognition.”
He remarked that KuCoin requires “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.”
Crypto exchanges such as Binance have been criticized for aiding fraud, and regulators blame their poor emphasis on KYC checks as a core reason for the increase in crypto fraud. Kucoin’s decision to mandate KYC requirements is part of its effort to comply with the global anti-money laundering policy.
KuCoin also requires information on the customer’s business and risk profile in keeping with the demands of the applicable laws and regulations. KuCoin is arguably one of the biggest crypto exchanges, with an alleged registered user base of almost 20 million.
The news of mandatory KYC checks was received with mixed emotions by the exchange’s users. Some believed the crypto exchange had succumbed to the government’s pressure, while others expressed total discomfort with revealing their identities.
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