Crypto exchange KuCoin has tightened KYC rules again
Date: 2023-08-09 Author: Karina Ziganova Categories: BLOCKCHAIN
Cryptocurrency exchange KuCoin has announced that it is once again tightening Know Your Customer (KYC) verification requirements from August 31, the platform said.
By tightening the requirements, the exchange is going to strengthen compliance with laws and regulations, as well as improve the security of user accounts and combat illegal and criminal activities.
Once the new rules go into effect, users will be required to upload their identity documents and undergo a biometric facial check. This is the basic procedure.
KuCoin users who do not complete KYC by 00:00 UTC (03:00 Moscow time) by August 31 will be limited to the range of available services. Without verification, they will only be able to sell assets, close futures and margin positions, withdraw money from Earn products, and redeem ETFs. The deposit service will not be available.
“During the renewal period, the funds in your account will be safe. However, in order to continue using your account, be sure to complete the standard user identity verification (KYC) as soon as possible,” the platform says.
Mandatory KYC procedure
From July 15, KuCoin introduced mandatory identity verification for all users. From this date, some services became unavailable for users without KYC, however, they could still open sell orders for spot trading, reducing the share of debt in futures trading. They also have access to repay loans and withdraw money from staking.
Representatives of the exchange emphasized that mandatory verification is being introduced to comply with regulatory requirements and improve the security of assets.
KuCoin Verification Failed to Save Resources
However, after the introduction of mandatory KYC, the crypto exchange announced that it would lay off 30% of the workforce - about 300 employees. This was confirmed by at least three KuCoin employees.
The main reason for mass layoffs is the strict policy of verifying platform users. The changes began after the US authorities sued KuCoin, which led to a decrease in the exchange's profits.
