Popular cryptocurrency exchange KuCoin will now require KYC (know your customer) verification for all its users.
According to the announcement, the new application will be effective from 15 July.
KYC stands for Know Your Customer. It is a set of regulations that require financial institutions to identify and verify their customers. Cryptocurrency exchange platforms are considered financial service providers, so they must also comply with KYC regulations.
For the crypto industry, KYC is a process that involves collecting and verifying information such as name, email address, phone number, address, photo ID, source of funding from customers who want to trade Bitcoin and crypto on an exchange.
KuCoin CEO Johnny Lyu said the updated KYC policy is to “better comply with applicable legal requirements”:
“As users provide more information to complete their profiles, we will provide users with a wider range of platform products and services, including but not limited to higher daily withdrawal limits, more comprehensive trading tools and a wider variety of user activities.”
Lyu said that, given the new KYC policy, “there may be a short-term drop in transaction volume, but in the long run, mandatory KYC is extremely beneficial for combating malicious activity in the industry, protecting users/partners' funds, and creating a healthy and sustainable ecosystem.” ” told.
“We also believe that our users will adapt to the changes and support our initiatives,” Lyu added.
*Not investment advice.
