A major crypto exchange platform is adding mandatory Know Your Customer (KYC) rules for its clients as a means of embracing regulation.
According to a new press releaseKuCoin, a Seychelles-based crypto exchange, will roll out mandatory KYC authentication rules for its customers from July 15, 2023.
The change would force current customers to comply with KYC regulations in order to access the crypto exchange’s full suite of products. Those who do not comply will have limited access to KuCoin’s services.
According to Jonny Lyu, the CEO of KuCoin, the move was made to better comply with federal regulations and improve 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 turned from a geek [movement] on its way to mass adoption.
However, this process has also led to certain security vulnerabilities related to on-chain assets. In light of this, KuCoin has strengthened our KYC system to meet 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 identify a customer to prevent fraud, money laundering and other financial crimes. The law was enacted in 1970 as part of the Bank Secrecy Act (BSA).
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