Major cryptocurrency trading platform, KuCoin, has unveiled plans to augment its Know Your Customer (KYC) protocols. The move aims to enhance user identity verification, a core aspect of its compliance strategy with global Anti-Money Laundering (AML) regulations.

On June 28, KuCoin went public with the news of the impending KYC system upgrade. This significant strategic shift signals the firm’s intention to fortify compliance with evolving international anti-money laundering norms.

Implementation Schedule and Affected Services

Starting July 15, 2023, KuCoin’s KYC policy overhaul will require all new users to complete mandatory KYC checks. Without this critical process, new sign-ups will face restricted access to KuCoin’s broad array of cryptocurrency products and services.

Moreover, users who have registered before this stipulated date are not exempted. They are also expected to complete the KYC process for unfettered access to some of KuCoin’s platform features. However, non-compliant users will face limitations such as an inability to deposit new funds, though withdrawal services will remain unaffected.

Despite these restrictions, existing KuCoin users can continue to enjoy services like spot trading sell orders, futures trading deleveraging, and margin trading deleveraging. Other unaffected services for existing non-KYC users include redemptions at KuCoin’s staking and lending hub, KuCoin Earn, along with exchange-traded funds’ redemption.

Enhanced KYC Verification Process

The upgraded KYC process involves a meticulous procedure that requires users to undergo facial recognition. Additionally, they need to submit personal identification details such as their full name, ID number, and a snapshot of their ID. KuCoin will subsequently verify this information per applicable jurisdictions’ legal provisions and regulations.

In line with legal requirements across multiple jurisdictions, KuCoin will also collate additional data linked to the user’s business and risk profile. The risk profile data incorporates elements such as the nature and volume of trading activity, and the origin of virtual funds deposited.

KuCoin’s decision to revise its KYC policy is largely driven by its commitment to adhere to regulatory norms across different jurisdictions. This move is imperative since a unified global KYC regulation is currently absent.

The Global Impact of the KYC Upgrade

This strategic KYC system upgrade is poised to influence many cryptocurrency users worldwide. As of July 2022, KuCoin recorded over 20 million registered accounts on its platform, illustrating the far-reaching implications of this pivotal policy change.

KuCoin’s new mandatory KYC policy signifies a robust commitment to ensuring global regulatory compliance and fortifying its stand against money laundering activities. As the crypto exchange ecosystem grows, KuCoin’s policy upgrade could be the harbinger of similar enhancements across the industry.

None of the information on this website is investment or financial advice and does not necessarily reflect the views of CryptoMode or the author. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website by its authors or clients. Always conduct your research before making financial commitments, especially with third-party reviews, presales, and other opportunities.