Bybit Makes KYC a Mandatory Requirement for all Users
- Bybit recently halted the transfer of United States dollars following the collapse of Silvergate Bank.
- Japan’s Financial Services Agency recently flagged Bybit for operating without proper registration.
- Last December, Bybit announced that it was cutting its workforce by 30%.
As blockchain platforms continue to ramp up efforts to increase security, crypto exchange Bybit has announced that, starting May 8, completing Know Your Customer (KYC) procedures will be a mandatory requirement to use all of its services.
The platform shared the news in an update on Monday, April 24, noting that users who fail to complete the process before May 8 will only be allowed to “close existing open positions or orders, return loans, or withdraw. Any new trading activities will be restricted.”
Like most exchanges, Bybit limited withdrawal rates for non-KYC users before its recent announcement. Non-KYC users had a daily withdrawal limit of 20,000 USDT and a monthly cap of 100,000 USDT.
KYC is a procedure that cryptocurrency exchanges are required to use in order to verify the personal data of their end users and clients. They also use it to learn more about the actions of their potential clients and confirm that they are legal. Furthermore, KYC also helps exchanges analyze the likelihood that their clients pose money laundering risks.
There are still a number of exchanges that do not demand KYC. Crypto users who are exceedingly mindful of their privacy prefer non-KYC exchanges despite the risks associated.
Assuring its users of its security practices, Bybit wrote,
Bybit ensures that your personal information will be encrypted and protected for privacy and security, and will be used for the sole purpose of verifying your identity to better serve you. It is neither shared nor repurposed for any marketing.
Bybit explained that the KYC procedures might take anywhere between 15 minutes and 48 hours to be implemented. The exchange noted that the decision was made to provide extra layers of security and strengthen compliance.
Bybit has had its fair share of problems with regulators over its operations. Regulators in Japan recently flagged the exchange for operating without the necessary registration. The exchange also announced plans to cut its workforce by 30% last December.