The high prevalence of crypto-related crimes has prompted exchanges to tighten security protocols to mitigate associated risks. In the latest development, cryptocurrency exchange Bitget announced that it is adjusting the “know your customer” (KYC) requirements for users. The crypto exchange noted that its decision aligns with global crypto regulatory requirements aimed at protecting users.
Biggest Beef-Up Of KYC Rules Amid Global Expansion Plans
According to the August 21 announcement, starting from September 1, newly registered users must complete a level-one KYC verification process. On the other hand, crypto users already connected with the platform must complete the identity verification before October 1, 2023.
Between September 1 and October 1, users who have not completed the KYC verification can still withdraw, deposit, and trade. However, after October 1, Bitget will restrict users who fail to complete the verification from carrying out trading activities.
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Meanwhile, Biget’s level-1 know-your-customer verification requires the submission of a government-issued document of identification, including facial authentication. According to Bitget’s registration landing page, the verification process only takes 20 minutes
Notably, the move to heighten KYC requirements comes amid Bitget’s global expansion plans. On April 10, Bitget announced raising $100 million in fresh funds to support Web3 innovation in Asia.
In addition, the Seychelles-based crypto exchange has been expanding its offerings. On July 4, it launched cryptocurrency loan products to provide alternative funding through crypto assets.
Crypto Exchanges Aim To Repel Bad Actors With Stringent User Identity Verification (KYC) Approaches
Several cryptocurrency exchanges have introduced strict know-your-customer (KYC) user verification processes amid heightened global crypto regulatory scrutiny.
In a new announcement, KuCoin said it will introduce adjustments to its Identity Verification procedures. According to the announcement, the new procedure will start on August 31, 2023, at 0:00 UTC.
This move is part of KuCoin’s strategy to curb illicit activities, including money laundering and terrorism financing. As such, users who registered before August 31 but failed to complete the identity verification will not have access to deposit services.
Previously, KuCoin introduced a compulsory KYC procedure for all users in July. The crypto exchange warned that users who failed to comply with the guidelines would face service restrictions.
The move followed a lawsuit against KuCoin by Letitia James, the New York State Attorney General (AOG). In the lawsuit, the AOG alleged that KuCoin failed to register as a commodities and securities broker and dealer.
Also, in a previous development, Bybit introduced level-1 identity verification or KYC for all products and services starting in May. The announcement said Bybit will restrict users who failed to complete the identity verification from normal trading activities.
These exchanges’ efforts aim to reduce the risks of crypto-related criminal activities and create a safe user trading environment.
Featured image from Pixabay and chart from TradingView.com