Cryptocurrency platform KuCoin has announced that it will introduce mandatory know-your-customer (KYC) rules to comply with regulatory requirements.
KYC rules will come into effect as early as next month, and customers will need to complete several mandatory identity checks in order to use the services provided by KuCoin.
KuCoin is regulated
According to a press release issued by the agency KuCoin Exchanges, KYC rules will come into effect on July 15th. This means that users will need to complete KuCoin’s KYC process in order to use the exchange and its services.
“In line with KuCoin’s core values, we are committed to fulfilling our ‘know your customer’ obligations in accordance with applicable regulatory requirements. We continuously protect our customers’ assets and combat money laundering, terrorist financing and related financial crimes around the world. here Based on this, KuCoin will strengthen its customer identification and verification program. This enhancement will come into effect on July 15, 2023 (UTC).”
Customers who have not completed the KYC process will not be able to trade or deposit on the exchange, the press release said. Therefore, the introduction of these rules means that current users will be forced to comply with KYC regulations in order to access KuCoin’s full suite of products and services. The press release states,
“Please note the following: From July 15, 2023 (UTC), newly registered users must complete KYC to use KuCoin’s products and services. For users who register before July 15, 2023 (UTC), if not completed KYC, you can only use spot trading sell orders, futures trading de-leveraging, leveraged trading de-leveraging, KuCoin income redemption, ETF and other services, and you will not be able to use the recharge service after redemption (withdrawals will not be affected).”
Better compliance with federal regulations
Cryptocurrency exchanges have come under considerable criticism due to perceived laxity in Know Your Customer checks. Regulators say such lax rules lead to fraud, terror financing and money laundering. KuCoin CEO Jonny Lyu said the introduction of mandatory KYC checks will help the exchange better comply with federal regulations and enhance overall security. In the press release, the CEO stated,
“As a people’s exchange, KuCoin always puts the security of user assets first. As a global exchange, KuCoin pays close attention to the cryptocurrency policies of various countries and respects compliance requirements to provide users with higher asset security. With the development of the cryptocurrency industry, cryptocurrencies have gradually moved from geeks to mass adoption. But this process has also brought about certain security issues of on-chain assets. In view of this, KuCoin has strengthened the KYC system to meet global regulatory requirements. And better protect the asset security of all cryptocurrency users through strengthened KYC rules.”
numbers keep growing
KuCoin In its annual review, it said it had more than 27 million active customers on its platform by the end of 2022, with 13 million users joining the platform in 2022 alone. This represents a 102% year-over-year growth in the exchange’s user base. The exchange revealed that the region with the most significant growth in its numbers is the Asia-Pacific region, which will add more than 7 million new users in 2022, a 191% increase since 2021. Other regions that saw user base growth were Latin America (120%), Middle East and Africa (120% and 109%), and Europe (100%).
From January to December 2022, the transaction volume also increased significantly, with the transaction volume of the spot and futures markets exceeding 3.6 trillion US dollars, a year-on-year increase of 52%. At its peak, the daily trading volume of the KuCoin futures market reached 23 billion US dollars, while the spot trading volume reached 12 billion US dollars.
Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.