KuCoin, a cryptocurrency exchange, recently announced the implementation of required identity checks in an effort to bolster its Know Your Customer (KYC) system. This action is part of the exchange’s commitment to meeting global standards. This will also be heavily utilized in the fight against fraud and money laundering.
Beginning July 15th, all new KuCoin customers will be required to pass a KYC authentication procedure. Existing clients will also need to register for KYC in order to use their accounts. This must be done regardless of the service you intend to use within the platform.
KuCoin will temporarily cease banking services to guarantee safety and a smooth transition. Customers will, however, be allowed to withdraw their cryptocurrency at any time. This is a pretty sensible strategy because it incentivizes users to complete the process rather than going through the inconvenience of switching platforms.
Users will be required to provide personal information such as their names, identity numbers, and a photograph as part of the KYC procedure. Customers will also be required to pass a facial recognition test. More information will be requested from the user to ensure that the individual is a real person having an identity.
NEWS: 🚀#KuCoin is enhancing security measures with mandatory ID checks!
— Walletor (@walletorapp) June 28, 2023
In accordance with regulatory regulations, KuCoin will ask consumers for their business number as well as a risk profile report. KuCoin intends to improve security and conform with jurisdictional legislation by applying certain KYC rules. While restrictions for KYC standards vary by area, the platform is working to meet these needs.
KuCoin is one of the world’s major cryptocurrency exchanges, with over 20 million registered users as of last year. The implementation of mandatory ID comes as no surprise, and many more exchanges will be required to do the same in the near future.
All in all, KuCoin’s move is consistent with an industry trend. Because of recent issues between the Securities and Exchange Commission (SEC) and other cryptocurrency exchanges such as Binance and Coinbase.
Finally, KuCoin’s implementation of required KYC checks demonstrates the exchange’s dedication. These new steps will assist to strengthen the KYC system and build trust among users and regulators.