KuCoin and Binance make KYC verification mandatory to comply with regulations.
Non-KYC users can only use limited features like sell orders, withdrawals still available.
KuCoins new KYC registration goes into effect on July 15.
KuCoins decision to enforce know-your-customer verification is in response to the changing regulatory landscape.
The exchange will now restrict access to certain features to non-KYC users. According to a press release, these users will be limited to “spot trading sell orders, futures trading deleveraging, margin trading deleveraging, KuCoin Earn redemption, and ETF redemption.” This move is aimed at enhancing the security of on-chain assets, which has become a growing concern with the rise of cryptocurrencies.
Starting July 15, KuCoin will require all users to undergo KYC registration. This will be similar to the intermediate verification process that Binance implemented in 2021. Users will need to verify their country of residence and nationality, and provide a government-issued ID. This is in line with the industrys efforts to increase transparency and mitigate the risks of illegal activities.
Although withdrawals will still be available, deposit services will be limited to KYC-registered users. This means that users who do not comply with the new policy will not be able to fully utilize KuCoins services.
KCs move to enforce KYC registration follows legal action taken against the exchange by various countries. In March of this year, New York Attorney General Letitia James sued KuCoin for operating in New York without registering as a securities and commodities broker-dealer. This is part of a larger crackdown on crypto fraud by the NYAG, which has targeted several other companies as well.
KuCoin‘s decision to enforce KYC registration is a step towards strengthening the security of the exchange’s platform and complying with regulatory requirements. While it may inconvenience some users, it is necessary to ensure the safety of on-chain assets and prevent illicit activities in the crypto industry.