KuCoin, one of the largest and most popular cryptocurrency exchanges in the market, will be requiring users to pass obligatory know-your-customer checks starting in July this year. The information was communicated by the company in a recent press release. These compulsory KYC checks are linked to the increased pressure received by crypto companies from regulators.
KuCoin Exchange to Introduce Compulsory KYC Checks
KuCoin decided to introduce a compulsory KYC check in order to be compliant with increasing regulations around the world. The company decided to start with these checks on July 15 and it will be applied to all users on this platform.
All new users will have to complete KYC checks in order to get access to products and services. In this way, the company claims that it will reach a high level of accountability and transparency within the platform.
Additionally, there will be limited services for non-KYC users. Those users that register before July 15 will have restricted access to certain features. Some of the services that they will get access to include:
- Spot trading sell orders
- Margin trading deleveraging
- Futures trading deleveraging
- KuCoinEarn redemption
- ETF redemption
It is also worth taking into consideration that users will also not be able to make deposits but withdrawals will remain unaffected.
About this decision, Johnny Lyu, the CEO of the cryptocurrency exchange mentioned:
“KuCoin has strengthened our KYC system to comply with regulatory requirements worldwide and better protect the asset security of all cryptocurrency users through enhanced KYC rules.”
The decision taken by KuCoin comes after multiple attacks received by the cryptocurrency industry from regulators all over the world. Binance, the largest crypto trading platform, is allegedly violating US law by operating an unregistered securities exchange in the country, according to the U.S. Securities and Exchange Commission (SEC).
Furthermore, Binance had to cease its operations in Netherlands and Belgium. It will be a matter of time before we see other exchanges being affected by similar regulatory measures.