Bitget Increases KYC Requirements, Following KuCoin and OKX
Bitget begins KYC verification. Starting September 2023, new users must complete level 1 KYC verification to access services.
Bitget, a Seychelles-based cryptocurrency exchange, is enhancing its Know Your Customer (KYC) verification standards. This move aligns with global regulatory guidelines and aims to elevate user security.
Know Your Customer (KYC) is a procedure used by different institutions to verify the identity of their customers. It's integral for risk assessment and compliance with Anti-Money Laundering (AML) regulations. But how does it apply to the crypto world? In cryptocurrency exchanges like Bitget, KYC ensures that users are who they claim to be.
How does this benefit users? In reality, in no way. Instead, KYC assists tax agencies in monitoring users' financial activities and compels them to declare asset movements for taxation purposes. Additionally, it's often stated that KYC is implemented to prevent fraudulent activities as if those engaged in fraud would operate through centralized exchanges (CEX).
Starting September 2023, Bitget will require newly registered users to complete level 1 KYC verification to access services, including deposits and trading. Existing users must complete this verification by October 1, 2023. What happens if users don't comply? They will be restricted from creating new trading orders and limited to withdrawals, cancel orders, redeem subscriptions, and closing positions.
While the new KYC requirements enhance security, they impose new obligations on users. Those who fail to complete the verification process will face restrictions. What does this mean for user experience? It emphasizes the importance of compliance and may affect accessibility for some users, particularly those concerned about privacy.
Bitget is not alone in revisiting its KYC standards. Other platforms like KuCoin and OKX have also updated their KYC policies. What does this signify? It means that cryptocurrencies, created for the privacy of transactions and users' funds, are being restricted by regulations more and more at this moment.