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Cryptocurrency Exchange Bitget Strengthens KYC Requirements in Line with Global Standards

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Cryptocurrency Exchange Bitget Strengthens KYC Requirements in Line with Global Standards
Cryptocurrency Exchange Bitget Strengthens KYC Requirements in Line with Global Standards

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Seychelles-based cryptocurrency derivatives exchange Bitget has announced significant updates to its Know Your Customer (KYC) verification requirements, aiming to align with international regulatory guidelines and bolster security measures. 

The move comes amid growing concerns about the risks of inadequate identity verification in crypto. The exchange’s proactive stance reflects an industry-wide trend towards stricter KYC measures to combat fraud, money laundering, and other illicit activities.

According to Bitget’s statement, effective from September 1, 2023, its revised KYC verification policies will necessitate all newly registered users to complete level 1 KYC verification to access various services on the platform. These services include activities such as depositing and trading digital assets. 

The crypto exchange highlighted that the heightened KYC procedures safeguard users’ rights, adhere to global regulatory norms, and foster a secure trading environment.

For users who signed up before the September 1 deadline, Bitget mandates that level 1 KYC verification must be completed by October 1, 2023. During the transition period, users who would not have fulfilled level 1 KYC verification will retain their ability to deposit, withdraw, and trade as usual. 

However, beginning October 1, users who have not finalized level 1 KYC verification will face limitations. Bitget stated: 

They will only be able to withdraw, cancel orders, redeem subscriptions, and close positions, being restricted from creating new trading orders.

This strategic shift encourages timely compliance to avoid disruptions in trading activities and other services.

Know-your-customer (KYC) verification is a crucial set of procedures utilized by financial institutions and regulated entities to confirm the identity of individuals.  According to Bitget, its KYC procedures align with this approach, aiming to assess potential risks and enhance security measures for both the platform and its users. The verification process can be initiated through the user’s profile and involves providing necessary identification information.

Bitget’s Global Strategy

Bitget’s decision to intensify its KYC protocols is aligned with the exchange’s overarching goals, which include expanding its global presence. Earlier this year, the platform unveiled a $100 million venture capital fund to foster growth in the Asian market. 

Moreover, the introduction of crypto loan products in July indicates the exchange’s focus on diversifying its offerings to cater to users seeking alternative funding solutions using digital assets. Bitget reports a global user base of 20 million registered individuals.

Industry-Wide Trend

Bitget’s proactive stance towards enhanced KYC procedures reflects broader industry trends. The cryptocurrency sector has faced criticism for perceived deficiencies in KYC checks linked to fraudulent activities, money laundering, and potential terrorist financing. Regulatory pressures and legal actions have partly propelled this trend towards heightened KYC measures. Various exchanges have been implementing more rigorous verification processes to mitigate these risks.

KuCoin faced legal challenges that prompted the platform to announce a KYC system upgrade, mandating mandatory checks for all new users to align with global Anti-Money Laundering regulations. The move followed a lawsuit filed by the New York State Attorney General alleging KuCoin’s unregistered operation as a commodities and securities broker.

OKX, another crypto exchange, set a September deadline mirroring Bitget’s, which requires users to complete a KYC process for identity verification. Similarly, Bybit announced that, as of May 8, 2023, identity verification of at least level 1 is compulsory for all its products and services. 

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