KuCoin, one of the leading cryptocurrency exchanges, has announced its plans to enhance its Know Your Customer (KYC) system by implementing new mandatory identity checks. The move comes as a part of the exchange’s efforts to comply with global Anti-Money Laundering regulations and strengthen its commitment to security.
In an official statement released on June 28, KuCoin revealed that the upgraded KYC system would require all new users to undergo KYC checks starting from July 15, 2023. Without completing the KYC process, newly registered users will not be granted access to KuCoin’s range of products and services.
Existing users who registered before the designated date will also be required to complete the KYC process in order to access certain features on KuCoin. While withdrawals will remain unaffected, users who have not completed their KYC will not be able to deposit new funds.
KuCoin assures that despite the KYC requirements, existing users will still be able to utilize services such as spot trading sell orders, futures trading deleveraging, and margin trading deleveraging. Other available services for existing non-KYC users include redemptions at KuCoin’s staking and lending hub, KuCoin Earn, as well as exchange-traded funds’ redemption.
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Johnny Lyu, the CEO of KuCoin, emphasized the importance of compliance in the evolving cryptocurrency industry. He stated that the new KYC system would not only increase the platform’s compliance but also enhance the security of all cryptocurrency users’ assets. Lyu acknowledged the emerging security issues related to on-chain assets and expressed KuCoin’s commitment to addressing these concerns.
KuCoin, which boasts over 20 million registered accounts as of July 2022, expects a significant impact on cryptocurrency users worldwide due to the new KYC update. As one of the largest crypto exchanges globally, KuCoin reports daily trading volumes of approximately $540 million and attracts over 8 million monthly visits, according to CoinGecko. By comparison, Kraken, a major US-based exchange, records around 5 million visits per month and trades approximately $380 million worth of crypto daily.
The implementation of stricter KYC policies is not exclusive to KuCoin. Other cryptocurrency exchanges have also been adopting similar measures recently. For instance, in May, the Bybit exchange restricted non-KYC users from withdrawing more than 20,000 Tether (USDT) per month. This trend may be a response to the rise of cybercriminals capitalizing on KYC requirements. In April 2023, it was reported that hacked and verified crypto accounts were being sold on the darknet for as low as $30.
In summary, KuCoin’s decision to upgrade its KYC system is a significant step towards ensuring compliance with Anti-Money Laundering regulations and enhancing user asset security. The implementation of mandatory identity checks for all new users, as well as requiring existing users to complete their KYC process, reflects the platform’s commitment to maintaining a secure and trustworthy environment for cryptocurrency trading. By aligning with global regulations and adopting stricter KYC policies, the exchange aims to safeguard the interests of its users and contribute to the widespread adoption of cryptocurrencies.
