Bitget Managing Director Said Crypto KYC Protocol May Get Stricter
In a recent report, the Managing director of Bitget exchange, Gracy Chen, announced that there is a possibility that the Know-Your-Customer procedures on the platform might get stringent as some additional biometric data would be collected together with the primary verification. In addition, users may be required to verify their accounts multiple times a year.
According to Gracy Chen, it is possible that the KYC protocol would be implemented as the new standard in the crypto market, with the likelihood that some biometric data would be required to complete the KYC procedures as the concept keeps gaining traction in the industry. The MD admitted that the new development might be confusing and controversial; however, it aims to flush out fraudulent individuals in the industry.
Concerning the KYC protocol, which the platform implemented on September 1, Chen stated that some additional measures have been incorporated into the KYC system of the platform to maintain its users’ stability and protection and sustain its global operations.
Chen highlighted that the firm wasn’t the first to implement KYC protocol, which has become a significant trend among crypto platforms. In addition, he said implementing the protocol didn’t have much impact on the firm’s users as the majority seek a trustworthy and secure platform to conduct their business, making KYC an advantage.
Bitget Aims To Implement Full KYC Protocol
The report showed that Bitget’s decision came shortly after some of its rival exchanges, including Bybit and KuCoin, mandated their customers to observe KYC protocol on their platforms earlier this year. Chen added that the firm believe KYC plays a huge role in creating trust among users and also protects crypto firms against money laundering and fraud. It also helps the firm to expand its global presence as part of its primary goal.
Since Bitget Exchange was launched in 2018, it has been using a form of KYC protocol that allows customers to access some specific services without completing the KYC procedure, especially with transactions that cost funds. However, the new integration demands full KYC compliance before users can access the exchange’s services.
However, Chen admitted that even though KYC immensely helps to prevent illegal and fraudulent activity such as money laundering, it is not sufficient to stop all financial crimes. He added that despite all the upgrades in KYC and AML protocols over the years, there are still loopholes that fraudsters use in scamming investors. He, therefore, urged that the crypto industry needs a more sustainable, scalable, and cost-effective solutions to detect, track, investigate, and perhaps prevent financial crimes in the cryptocurrency industry.
He suggested that prospective solutions should combine many of the trending innovations like Robotic Process Automation, workflow analytics, enhancement, AI, machine learning, and human control to improve and facilitate risk detection and prevention.
Chen Suggests the Use of AI To Strengthen KYC Protocol
The MD suggested that staying up-to-date with crypto regulatory evolution is as crucial as improving technical and human control of transaction processes and data.
Furthermore, Chen pointed out that Artificial Intelligence, AI, offers a unique potential capable of transforming the anti-money laundering processes. He said the technology could deliver significant operational efficiencies in vital areas like monitoring transactions and screening and user due diligence. Citing instances, the MD stated that conventional AML transaction monitoring protocol sometimes raises false alarms, creating operational delays.
Meanwhile, there have been reports of personal data leakage from crypto firms that implements KYC in the past, which makes adopting the process controversial. However, Chen started that there is a need to strike a balance between privacy and security.
According to the MD, many hackers hunt investors’ personal information, assess identifying loopholes, hack it, and sell it on the darknet. Nonetheless, he assured customers that Bitget stores users’ information with the same level of security integrated into cryptocurrency, making it challenging for hackers to access.
He further reiterated that the firm’s primary goal is to protect customers’ data, which is why it implements stringent protocols and enhanced equipment to secure users’ data. In addition, the firm ensures that all vendors comply with its KYC requirements.
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