- KuCoin is employing mandatory KYC from July 15
- All new users will be required to pass KYC while existing users will see features restricted
- KuCoin is one of the few holdouts from 2017 to not employ mandatory KYC
KuCoin is finally catching up with the demands of the new era of crypto trading by implementing mandatory KYC next month. The exchange, which has somehow managed to hold out until now, revealed the measure yesterday as part of a move to “embrace regulation,” rather like one embraces the soldiers of a conquering army. From July 15, new users will have to pass KYC upon registering, while existing users will see their facilities on the platform diminished until they do.
KuCoin Tries to Accentuate the Positive
KuCoin called the move to introduce mandatory KYC a “strategic move [which] aims to embrace global compliance requirements, foster a safer trading environment, and bolster the security level of user accounts.” The Seychelles-based company has been operating since 2017, and given its fairly prominent reputation in the crypto space it is somewhat surprising that it has managed to exist this long without being forced by international regulators to implement mandatory KYC.
Johnny Lyu, CEO of KuCoin explained the importance of the move in a press release, in which he noted, rather oddly, that crypto has “gradually moved from a geek towards mass adoption” and that KuCoin was taking steps to ensure that it is moving with the times:
In light of this, KuCoin has strengthened our KYC system to comply with regulatory requirements worldwide and better protect the asset security of all cryptocurrency users through enhanced KYC rules.
Limited Functionality Until KYC is Completed
Starting from July 15, all newly registered users must complete KYC to access KuCoin’s full suite of products and services, while existing users will only be able to use certain features, such as spot trading sell orders and futures and margin trading deleveraging. Crucially, users who don’t complete KYC can still withdraw funds past the cutoff date.
Kucoin’s competitors have had mandatory KYC in place for months if not years, with Binance implementing it in 2021.
