A major crypto exchange platform is adding compulsory Know Your Customer (KYC) rules for its customers as a means of embracing regulations.
According to a new press release, KuCoin, a Seychelles-based crypto exchange, will be rolling out mandatory KYC authentication rules for its customers starting on July 15, 2023.
The change would force current customers to comply with KYC regulations to access the crypto exchange’s full suite of products. Those who fail to comply will have limited access to KuCoin’s services.
According to Jonny Lyu, KuCoin’s chief executive, the move was done to better comply with federal regulations and enhance security. As stated by the CEO in the press release,
“KuCoin has always prioritized the security of users’ assets. As a globalized exchange, KuCoin closely monitors the crypto policies of various countries and respects compliance requirements, providing users with enhanced asset security.
With the development of the cryptocurrency industry, crypto has gradually moved from a geek [movement] towards mass adoption.
However, this process has also brought about certain security issues concerning on-chain assets. In light of this, 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 KYC process was created so that financial institutions such as banks can establish a customer’s identity to counter fraud, money laundering, and other finance-related crimes. The law was established in 1970 as a part of the Bank Secrecy Act (BSA).
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