From May 8, 2023, at least level 1 authentication will be mandatory for all products and services of the cryptocurrency exchange Bybit.
Bybit Users Must Complete KYC Before May 8
Existing users who have not completed their identity verification as of May 8, 2023 will only be allowed to close existing open positions or orders, repay loans or withdraw funds.
KYC stands for Know Your Customer and refers to the procedures of financial institutions dealing with cryptocurrencies to prevent identity theft, fraud and other criminal activities by verifying your identity. In cryptocurrencies, KYC aims to prevent illegal activities such as money laundering, terrorist financing and tax evasion by confirming the identity of a customer.
News about the policy change has been circulating on social media recently. Bybit said such a move was possible when it introduced KYC requirements for peer-to-peer trading and some NFT services in December.
The exchange said at the time that it "may further expand its KYC requirements in the near future."
Bitcoin exchange Bybit has not made a statement for the policy change, but regulators around the world have been taking a closer look at crypto exchanges in recent months, especially in the US. Bybit had moved its headquarters from Singapore to Dubai last year.
Bybit relied on its KYC-free strategy in the early days, gaining a large number of users from BitMEX, but it seems possible to focus on compatibility as the exchange grows in size.
*Not investment advice.
