It's crucial for crypto exchanges to perform the Know Your Customer (KYC) verification process. The anonymity that comes with using crypto exchanges can lead to potential risks, such as sending funds for illegal activities like terrorist attacks. KYC helps prevent such incidents by verifying the identity of individuals involved in transactions.
Kucoin has implemented a new policy to prevent certain actions by customers. They have announced that customers will be required to complete Kucoin KYC requirements before depositing or carrying out any other actions. This policy change is mandatory and was announced on June 28th, with implementation expected in mid-July.
"Dear KuCoin Users,
Consistent with KuCoin’s core values, we are dedicated to fulfilling ‘Know Your Customer’ obligation in accordance with the applicable regulatory requirements. We continually protect our customer’s assets and combat money laundering, terrorist financing and related financial crimes around the world, based on this, KuCoin will enhance the Customer Identification and Verification Program," Kucoin said in their announcement.
New Policy To Kick Off in July
Starting from the crypto exchange, Kucoin login will now require new users to complete a KYC before accessing the deposit feature.
"Starting from July 15, 2023 (UTC), newly registered users must complete their KYC in order to use KuCoin's products and services," the crypto exchange announced.
So what happens to existing users who haven't completed the KYC? Kucoin says they would still remove the deposit feature from their account. However, they would still be able to access other services, such as withdrawal and spot features.
"For users who registered before July 15, 2023 (UTC), if their KYC is not completed, they will only be able to use services such as Spot trading sell orders, Futures trading deleveraging, Margin trading deleveraging, KuCoin Earn redemption, ETF redemption, and will not be able to use the deposit service (withdrawals are not impacted)," Kucoin added.
KuCoin CEO Johnny Lyu said they were making the new policies because they wanted to ensure the privacy and security of their operations. Furthermore, Johnny Lyu said the mandated KYC requirements are part of their consistent efforts to meet global compliance requirements and ensure the safety of user assets.
"Protect customer’s assets is our primary duty. We will timely update the KYC requirements and corresponding limits according to the relevant legal obligations, integrate with the properties of various products and network environments," Kucoin said.
Early Introduction of KYC at Kucoin
KYC was introduced to Kucoin as early as 2018, but it wasn't as compulsory as today. Back then, in 2018, Kucoin KYC requirements weren't mandatory, and users could make deposits on the platform without any regulation. The impact their KYC process had was that users could not make direct withdrawals without verifying their identity.
But the new trend shows that KYC is now a necessary process for those who want to use a centralized exchange. It requires users to submit essential identification documents such as national identity cards, driver's licenses, and photographs. Sometimes, these exchanges also need you to verify your address to use the deposit feature.