KuCoin has decided to revamp its security measures, in the absence of a definite crypto governence system, to be in more alignment with the global Anti-Money Laundering regulations. The crypto exchange on Thursday, June 28 said that all its users, new as well as existing, will have to complete their KYC formality to unlock access to all of KuCoin’s services and products. KYC or Know Your Customer is a digital identification of oneself, often backed by some government-authenticated ID proof.
Starting July 15, all newly registered users will need to complete KYC to access the exchange’s comprehensive suite of products and services.
“As people’s exchange, 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,” Johnny Lyu, the CEO of KuCoin, told Gadgets 360.
In a recent report, CoinGecko had named KuCoin as the third most trustworthy exchange in the world after Coinbase and ByBit.
Despite the stellar market reputation, the exchange has undergone chaotic situations at least twice this year alone.
In April, for instance, the Seychelles-based crypto exchange identified that one of its users was a serial scammer. The said user would release memecoins, mint investments, and then pull off a typical rugpull scam, leaving stakeholders high and dry.
At the time, the exchange had to wait for an approval from Seychelles authorities before blocking the alleged scammer.
With this improved KYC system, the platform is looking to increase its self-reliance over security provisions in terms of identifying its users better and reporting suspicious potential criminals timely.
“Users who registered prior to July 15, and fail to complete the KYC process will have restricted access to certain features. These users will only be able to utilise services such as spot trading sell orders, Futures trading deleveraging, margin trading deleveraging, KuCoin Earn redemption, and ETF redemption. Deposit services will not be available, although withdrawals will remain unaffected,” the company noted
During the upgrade period, users’ assets will remain safe, KuCoin has vouched.
Launched in September 2017, the exchange currently sits on a valuation of $10 billion (roughly Rs. 82,000 crore).
