KuCoin, a prominent cryptocurrency exchange, has announced its plans to implement compulsory know-your-customer (KYC) checks starting from next month. Beginning on July 15, new users will be required to undergo the KYC process in order to access KuCoin's services.
Existing customers who fail to complete the KYC verification will not be able to engage in trading activities or make deposits. The introduction of mandatory KYC checks by KuCoin reflects a broader trend in the crypto industry, as regulators emphasize the importance of stringent identity verification measures to combat fraudulent activities, money laundering, and terrorist financing.
Crypto exchanges have faced criticism in the past for perceived lax KYC checks, with regulators raising concerns about the potential facilitation of fraud, money laundering, and terrorist financing through these platforms. By implementing mandatory KYC checks, KuCoin aims to address these concerns and enhance the security and transparency of its operations.
KuCoin boasts a significant user base, with over 27 million users reported by the end of 2022. As one of the world's largest cryptocurrency exchanges, KuCoin handles substantial trading volumes, reaching $531 million in daily trading volume, according to data provided by CoinGecko.
The decision to introduce mandatory KYC checks demonstrates KuCoin's commitment to regulatory compliance and aligning with evolving industry standards. By enforcing these measures, KuCoin aims to foster a safer and more secure environment for its users while upholding regulatory expectations in the rapidly growing cryptocurrency market.