Crypto Regulations and KYC Checks
As KuCoin exchange prepares to implement mandatory Know Your Customer (KYC) checks, the company’s CEO Johnny Lyu has argued that privacy is not the most important feature of Bitcoin (BTC). In an interview with Cointelegraph on July 4, Lyu suggested that the core benefit of Bitcoin is a unit of exchange, which allows holders to hedge against recessions.
Lyu pointed out that Bitcoin was created after the 2008 financial crisis, which was triggered by the United States subprime mortgage crisis. “These events led to the birth of Bitcoin,” he noted.
Although some may believe that overly strict KYC practices are not good for users as they may limit one’s privacy, Lyu believes that such policies are more useful than not, as they improve the security of users’ funds.
KYC: An Inevitable and Healthy Step in the Crypto Industry
“KYC is an important measure to protect the assets of the public and to ensure that assets are safeguarded on two different levels,” KuCoin CEO Johnny Lyu said. He further stated that as the cryptocurrency industry interacts more and more with the physical world, compliance is necessary.
“In conclusion, I would say that KYC is an inevitable and very beneficial step in the development cycle of crypto,” Lyu added. KuCoin officially declared in late June that they would be introducing mandatory KYC checks for all new users beginning July 15, 2023. Without completing KYC, newly registered users won’t be able to access KuCoin’s products and services. Existing non-KYC users will still be able to trade, but will be restricted from depositing new funds.
The crypto industry is full of buzzwords such as “crypto .com”, “avalanche crypto”, “crypto alerts”, “ada crypto”, “blur crypto”, “crypto latest”, “crypto regulation”, “crypto shiba inu”, “web 3.0 crypto”, and “breaking crypto”. KYC is an essential step to ensure that assets are kept safe and secure in the crypto world.
KYC Restrictions to Impact KuCoin’s Trading Volumes
The CEO of KuCoin told Cointelegraph that the new KYC restrictions are likely to affect the platform’s trading volumes in the short term. “We understand that in the short run, as the rules become more stringent and strict to certain customers, some may leave,” Lyu said. Despite this, KuCoin remains optimistic about crypto regulation in the long run.
The crypto exchange currently has 27 million users, which is a 35% increase since last year. Following the KYC upgrade announcement, KuCoin’s trading volumes have surged from around $540 million to more than $660 million, according to data from CoinGecko.
The avalanche crypto, crypto alerts, ada crypto, blur crypto, crypto latest, crypto shiba inu, and web 3.0 crypto markets are all watching to see how these new KYC restrictions will affect KuCoin’s trading volumes.
Subscribe to our email newsletter to get the latest posts delivered right to your email.