KuCoin is the last major crypto exchange to introduce KYC
KuCoin is the last major crypto exchange to introduce KYC as a mandatory process. Users will only be able to trade cryptocurrencies without identification until July 15th. The new system is said to offer more security. However, an adjustment due to regulatory pressure is more realistic. Alternative trading venues without KYC continue to exist.
KuCoin: Last major crypto exchange will require KYC from July
With KuCoin, the last major crypto exchange will be demanding KYC from July. So far, it has been possible to conduct pure crypto trading on the trading platform without identification. Previously, the process only had to be run through if the user wanted to unlock fiat currencies or a higher daily payout limit.
The change will take effect on July 15, the company announced in a press release . The company itself evaluates the change as progress. In this way, you not only follow global regulations when dealing with cryptocurrencies, but also improve the security of the user environment.
“This strategic move aims to comply with global regulations, create a safer trading environment and increase the security level of user accounts.” So KuCoin.
Users are likely to perceive the change differently. Surveillance is viewed critically in the crypto scene. Since 2017, crypto exchanges have typically had a KYC requirement when fiat currencies are involved.
Market leader Binance also wanted to keep the barriers to entry and monitoring of users as low as possible for a long time. The market leader has only been requiring identification from all users since August 2021. The company did not want to jeopardize its market dominance through regulatory conflicts.
Until recently, only KuCoin remained among the largest providers. The fact that KYC was not necessarily required on the marketplace was a unique selling point for the crypto exchange. The company, founded in 2017 and registered in the Seychelles, made it its goal to implement customer requirements particularly well.
Withdrawals for existing accounts will remain in place
KuCoin accounts that were founded before July 15, 2023 and have not yet performed a KYC will not necessarily have to do so in the future. Withdrawals are still possible for these accounts in the future.
Only the deposit of new funds – whether fiat or crypto – can no longer be managed from July 15th. Many functions within these accounts will also be restricted. Passive income from lending or other features can still be redeemed.
In addition, cryptocurrencies can still be sold but no longer bought. According to the company, the change is necessary because the increasing mass adoption of cryptocurrencies is causing security problems more and more often.
“KuCoin has always prioritized the security of users’ assets. As a global crypto exchange, KuCoin closely monitors the crypto policies of different countries, respects government regulations, and provides users with enhanced security.” Explains KuCoin Founder and CEO Johnny Lyu.
“With the development of the crypto industry, cryptocurrencies have gradually evolved from a niche topic to mass adoption. However, this process has also brought with it certain security issues related to on-chain assets.” he executes.
Stricter KYC measures should allow greater security and thus help to combat fraud, for example. Users who encounter problems are asked to contact KuCoin directly.
Other centralized marketplaces that do not require KYC will continue to exist. Popular is the trading platform TradeOgre, which does not offer the same user experience due to outdated features and trading pairs. The young marketplace BTSE is also enjoying increasing popularity, but does not yet have the same level of integrity as KuCoin.
Swiss company Mt. Pelerin supports trading between fiat and crypto, and more recently between cryptocurrencies. KYC is not necessary for any of the trading types.
