As Bitcoin has grown in popularity, more and more security problems have arisen, according to the CEO of the cryptocurrency exchange KuCoin.
KuCoin, a prominent cryptocurrency exchange, has implemented new measures to ensure the identity of its customers. The company revealed the KYC system improvement on June 28 in an effort to meet international anti-money laundering requirements. Beginning on July 15th, all new users must undergo identity verification as part of the update. Users in this category can only purchase the company’s wares once the issue is resolved.
Existing users can fund their accounts after first proving their identity. However, they’ll get access to additional services, such as buying and selling, risk-averse trading, and prizes. KuCoin’s CEO Johnny Lyu claims that the proliferation of cryptocurrencies has increased security concerns.
Similarly, Lyu said that the new KYC verification process would enhance the company’s compliance with international rules. He said that it would provide more security for financiers. About 27 million people were using KuCoin at the time of the announcement.
KuCoin isn’t the only cryptocurrency exchange strengthening its Know Your Customer (KYC) policy to meet worldwide standards and avoid financial crimes. Reuters reports that numerous exchanges have adopted similar restrictions in response to regulatory enforcement proceedings concerning their AML compliance.
For instance, Binance has recently instituted more stringent KYC requirements for its customers, restricting withdrawals and blocking entry from some countries. Coinbase has partnered with government organisations and authorities to facilitate sharing of consumer data and transaction details. Bybit limited the withdrawals of non-KYC users by more than 20,000 Tether in May.
This action demonstrates that cryptocurrency exchanges value Know Your Customer procedures for cryptocurrencies and are aware of the consequences of not complying. Authenteq CEO Katarzyna Kazimierczak-Mrowinska’s Forbes report says they can build a more reliable and long-lasting crypto ecosystem by adopting KYC technology that respects user privacy and security.
Also Read: The UK’s Law Commission Has Proposed Recognising Crypto As A Distinct Form Of Property
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