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On June 28, KuCoin officially announced the upcoming KYC system upgrades to increase compliance with global Anti-Money Laundering regulations.
The KYC authentication upgrade introduces mandatory ID verification for all new users on KuCoin starting July 15, 2023.
Failure to complete the KYC process, the newly registered users will be unable to access KuCoin’s suite of products and services, the exchange said.
Further, existing users who registered before July 15, 2023, must also complete the KYC process to access some features on the platform.
According to the announcement, without completing KYC, existing users can only use services such as Spot trading sell orders, Futures trading deleveraging, Margin trading deleveraging, KuCoin Earn redemption, and ETF redemption. Such users will not be able to deposit new funds, however, withdrawals will remain unaffected.
Why ID Verification?
Implementing mandatory identification checks is driven by KuCoin’s commitment to ensuring safe and compliant trading for its customers.
By verifying user identities, the exchange can mitigate risks associated with money laundering, fraud and other illicit activities. Such measures are crucial to maintaining the integrity of KuCoin and fostering trust within the crypto community.
Significantly, KuCoin CEO, Johnny Lyu, has noted that:
A complete KYC process requires users to provide their name, identification number, identification photo, and undergo facial recognition.
The CEO has further stated that KuCoin verifies the customer identification and verification data required under the laws and regulations of applicable jurisdictions.
Lyu has notably asserted that KYC is a principle that “KuCoin has always adhered to,” adding that identity recognition is an existing process. Nonetheless, the CEO has stressed that KuCoin set its KYC policy to comply with regulations in applicable jurisdictions since there isn’t a unified global KYC regulation.
The ID Verification Process
Commencing next month, KuCoin users will be required to complete the ID verification process to continue to use the platform’s services. The process is designed to be straightforward and user-friendly, ensuring minimal disruption to the trading experience. Here is a step-by-step breakdown of the ID verification process:
- User Notification – KuCoin will notify all users about the upcoming mandatory ID verification process. Further, the users will be given a specified timeframe to complete the verification.
- Know Your Customer (KYC) Process – Users will be directed to a dedicated KuCoin website or mobile app section to submit their identification documents. The platform will request specific documents, including a valid government-issued ID, passport, or the user’s address.
- Document submission – Users must upload clear and legible copies of the requested documents. The exchange will provide clear instructions and guidelines on document requirements, ensuring a smooth submission process.
- Review and approval – Once the documents are submitted, KuCoin’s verification team will review them. Users may receive notifications regarding progress or any additional information required during verification.
- Completion and Access – Upon successful verification, users will have their accounts upgraded to the verified status, granting uninterrupted access to all features and services on the exchange.
Additionally, the exchange CEO has notified the users to contact the platform’s support team, incase they have issues completing the KYC.
The updated KYC policy is one of our endeavors to uphold the high regulatory standards for the protection of our users. If you have any issues completing your KYC, don't hesitate to reach out to our support team. https://t.co/NicytRIIbC
— Johnny_KuCoin (@lyu_johnny) June 28, 2023
KuCoin Platform
The new KYC update will affect a significant number of cryptocurrency users worldwide. KuCoin says it had over 20 million registered accounts on its platform as of July 2022.
KuCoin is also one of the world’s largest crypto exchanges by trading volumes. At the time of writing, KuCoin’s daily trading volumes amount to around $540 million, according to data from CoinGecko.
On the other hand, other exchange firms have also been increasing their KYC policies. In May, the Bybit exchange restricted non-KYC users from withdrawing more than 20,000 Tether monthly.
It is worth noting that the introduction of mandatory ID verification on KuCoin is a significant step towards fostering a secure and compliant crypto trading environment.
By implementing this KYC process, the platform aims to enhance user protection, deter illicit activities, and maintain industry integrity.
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