The CEO of KuCoin said that the growing popularity of cryptocurrencies has increased the number of related security issues.
KuCoin is the leading cryptocurrency exchange City: additional check of KYC verification process. To comply with global anti-money laundering regulations, the firm announced a KYC system upgrade on June 28. As part of the upgrade, all new users will have to complete a mandatory identity check from July 15. Without it, such users will not be able to do this. There is no access to the firm’s suite of products.
Similarly, existing users will not be able to make deposits on the platform without additional verification. However, they will have access to other features like buying and selling, trading with less risk and getting rewards.
According to the CEO of KuCoin, Johnny Lue, the increased circulation of cryptocurrencies has increased the number of related security issues. They said:
“As a globalized exchange, KuCoin closely monitors crypto policies of different countries and respects compliance requirements, providing users with enhanced asset protection.”
Similarly, Lew said that the new KYC verification progress will improve the company’s compliance with global regulations. He also said that it would guarantee better security for investors. At the time of the announcement, KuCoin had approximately 27 million registered accounts.
KYC Verification Upgrade: Event Propagation
KuCoin is not the only crypto exchange to enhance its KYC policy in order to comply with global regulations and prevent financial crimes. According to a report by ReutersMany exchanges have adopted similar policies for their AML compliance in the face of enforcement actions by regulators.
For example, Binance recently implemented stricter KYC measures for its users, limiting withdrawals and blocking access to its platform from specific countries. In addition, Coinbase has partnered with law enforcement agencies and regulators to share customer data and transaction information. In May, Bybit also banned non-KYC users from withdrawing more than 20,000 Tether.
With cybercriminals exploiting security lapses around on-chain assets, these moves show that crypto exchanges understand the value of KYC for crypto and the risks of non-compliance. Katarzyna Kazimierzczak-Mowinska, CEO of Authentec, mentions in the article forbes By implementing KYC technology while respecting user privacy and security, we can create a more trustworthy and sustainable crypto ecosystem.
An experienced writer with hands-on experience in the Fintech industry. When he is not writing, he spends his time reading, researching or teaching.
Bitcoin Crypto Related Post