KuCoin introduces mandatory KYC checks, a move to increase compliance with global AML regulations

KuCoin, a renowned cryptocurrency exchange, on 28 June, announced introducing mandatory know-your-customer (KYC) checks for all users on its platform next month. These compliances will be in line with global compliance norms.

Now, starting from 15 July, all newly registered users will need to complete KYC in order to access the platform's wide range of products and services. Even the existing users who have registered before 15 July 2023, will need to complete the KYC process to access some features on KuCoin. Those customers (existing ones) who do not complete KYC will not be able to trade or make deposits.

New norms to help keep a check on money laundering and terrorist financing

The crypto trading platform decided to upgrade its security measures, in the absence of a definite crypto governance system. In fact, one of the key motives behind such a move was to be in more alignment with the global Anti-Money Laundering regulations.

Johnny Lyu, the CEO of KuCoin, in a statement, said, “A complete KYC process requires users to provide their name, identification number, and identification photo, and undergo facial recognition.” He further added, “As people's exchange, KuCoin has always prioritised the security of users' assets. As a globalised exchange, KuCoin closely monitors the crypto policies of various countries and respects compliance requirements, providing users with enhanced asset security.”

Moreover, Lyu mentioned that pursuant to the requirements of the laws and regulations of applicable jurisdictions, the exchange also collects additional information related to the customer’s business and risk profile.

It must be noted that the revamp of KYC norms would impact a significant number of crypto users worldwide as the exchange boasts more than 20 million registered accounts as of July 2022.