Dubai-headquartered crypto exchange Bybit has announced that
it would make Know Your Customer (KYC) identity verification measures
mandatory for customers in all products and services as of May 8.
The
platform cited the need for security and compliance, prevention of
illegal activities, and the opportunity to offer improved services in
case of lost credentials while explaining the decision.
- The
users who have not completed the KYC procedures will be able to only
close existing open positions and orders, return loans, and withdraw
funds.
- These users will not be able to engage in any new trading activity.
- The implementation time for the new KYC requirements will range from 15 minutes to 48 hours.
- Before
the update, Bybit users without KYC verification had a withdrawal limit
of 20,000 Tether (USDT) daily and 100,000 USDT monthly.
- The firm underlined that users’ personal information would be encrypted for privacy and used only for verifying their identity.
- KYC
is a common regulatory process generally implemented by financial
services providers, including banks and crypto exchanges, to identify
and verify their customers by asking for some key personal information
and documents.
- The process aims to improve trust in the industry, help service providers to assess the risks, and combat anti-money laundering and terrorism financing.
- Binance,
the largest crypto exchange by trading volume, has required customers
to make KYC verification in all services since 2021.
