By Hassan Mehmood (Saudi Arabia)
KuCoin exchange is one of the fastest-growing cryptocurrency exchanges. The platform was able to acquire trading licenses for European markets recently. The firm has been working on upgrading its operational infrastructure to become more compliant in various jurisdictions.
Recently, the CEO of KuCoin has maintained that the increasing trading volume on the platform has led to a rise in security issues.
To this end, the crypto exchange platform has decided to incorporate a KYC verification process. This user verification mechanism has been incorporated as part of the anti-money laundering efforts of the firm in line with international regulations.
From the time of activation, all users present on the platform have to undergo a security check before 15th July. At the same time, these users are not going to have access to the suite of products without getting verified for KYC.
KuCoin Aims to Comply with Regulatory Requirements
Johnny Lyu is the CEO of KuCoin, he recently claimed that the firm has been facing a significant rise in the total number of security-related issues. He maintained that KuCoin aims to become an international cryptocurrency exchange such that the firm has plans to comply with the regulatory requirements that are set in different jurisdictions to comply with the local regulatory policies.
Also read:The firm has notified its users that without the KYC verification completion, they will not be able to make deposits.
However, unverified account holders may still be able to purchase, sell, and trade virtual currencies at the same time qualify for rewards. Lyu maintained that KYC verification will ensure better security conditions for the account holders.
At the same time, it will grant more legitimacy to the organization as a global exchange. Data projections suggest that KuCoin currently holds around 27 million registered accounts at present.
A recent article published in Reuters has maintained that more cryptocurrency exchange platforms have brought KYC verification systems to their platforms recently. Other firms in the same category to implement KYC are Binance which has incorporated a stricter KYC compliance.
At the same time, the exchange has mandated the users to comply with the given requirements by limiting withdrawals of non-compliant accounts.
Coinbase is also working on updating its KYC compliance policies by partnering with law enforcement agencies and sharing customer data with the regulators. Meanwhile, Bybit also directed the account holders to complete the KYC checks by limiting their Tether withdrawals to 20K only.
Katarzyna Kazimierczak Mrowinska, the CEO of Authenteq, says KYC should not hinder user privacy and security which can lead to the creation of a reliable and sustainable crypto sector.
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