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Crypto Exchange KuCoin Introducing Mandatory KYC Checks Next Month

The Seychells-based crypto exchange KuCoin announced on Wednesday plans to introduce new compulsory identity checks. The KuCoin team explained that the new measures aimed at strengthening the company’s Know Your Customers (KYC) system.

The crypto exchange intends to invest heavily in upgrading the KYC system to comply with the global standards. The expected upgrades will support the firm in meeting global Anti-Money Laundering measures.

KuCoin Invests in KYC Upgrades

From July 15, the KuCoin team will launch the KYC authentication upgrades, accompanied by mandatory KYC checks. The crypto exchange mentioned that the KYC check would apply to all new users during registration.

It was reported that from mid-July, customers will be required to complete the KYC to access KuCoin’s crypto products and services would be compulsory.

The new measures will also apply to KuCoin’s existing customers, who must complete the KYC registration process to access their accounts and other services. The KuCoin users will be allowed to access the spot trading platform and interact with trading deleveraging platforms undisrupted after KYC registration.

Furthermore, to ensure compliance with the new rules, the KuCoin team will temporarily suspend all the depository services from July 15. The crypto exchange confirmed that customers could withdraw their assets anytime during the expected KYC upgrades.

Will KYC Update Address Fraud and Anti-Money Laundering Activities?

An official announcement conveyed by the chief executive of KuCoin, Johnny Lyu, outlined the procedures to complete KYC. Lyu stated that all the users would require to provide their details, including names and identification numbers. The users must provide an identification photo and complete a facial recognition test at the preliminary registration stage.

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He explained that the customer identification and verification process is in accordance with global rules. The CEO restated that to complete the registration, the customers must submit the necessary information, including their date of birth, physical address, name, and national ID number.

Beyond this, in the attempt to fully comply with the rules and regulations in a applicable jurisdiction, the KuCoin team will also request the customer to provide their business number and a report on the risk profile. The CEO explained that the risk profile would display crucial data such as trading volumes, the nature of the business, and the source of the digital assets deposited on the crypto exchange platform.

Significance of Implementing KYC Rules

Over the past, KuCoin users have always undergone the identity recognition process. Lyu confirmed that the crypto exchange proactively complied with the KYC principle. Initially, the KuCoin team formulated KYC policies to ensure that the crypto exchange complies with the rules of the applicable jurisdiction.

Currently, the Bretton Woods Institutions, in collaboration with international regulatory agencies, have not provided a unified KYC policy.

In a separate report, the KuCoin spokesperson confirmed that the crypto exchange KYC regulations fail to support the anti-money laundering regulations adopted in the United States.

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Recently the regulators revised KYC rules which are expected to be implemented in the coming days. Speculation concerning the KYC update revealed that the new regulations would affect the crypto-native community worldwide.

A recent report issued by the crypto exchange demonstrated that from July last year, over 20 million users registered with KuCoin.It was observed that KuCoin ranks as a leading crypto exchange with the largest trading volume.

Irrespective of this, the KuCoin’s July 15 KYC upgrade mirrors the compliance measures undertaken by the Dubai-based crypto exchange Bybit. Last month Bybit group adopted restrictive measures to bar non-KYC customers from making withdrawals of over 20000 Tether (USDT) monthly.


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Kimberly Crain

Kimberly Crain is a seasoned crypto trader and writer, offering valuable insights into the digital asset market. With expertise in trading strategies and a passion for blockchain technology, her concise and informative articles empower readers to navigate the evolving world of cryptocurrencies.

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