Beginning on September 1, new clients will need to finish level 1 know-your-customer (KYC) verification.
Regulators frequently lambast cryptocurrency exchanges for what they claim is a lack of KYC checks, claiming that this encourages fraud, money laundering, and terrorism financing.
The Seychelles-based cryptocurrency exchange Bitget will start next month with stricter know-your-customer (KYC) procedures for individuals intending to deposit or trade on its platform.
Level 1 KYC verification, which requires submitting an identification document like a passport and completing facial authentication, will be required starting on September 1 for new customers. According to a Monday announcement from Bitget, existing customers have until Oct. 1 to finish the process; after that date, they will only be able to withdraw money, cancel orders, or close positions.
Regulators claim that the perceived lack of rigorous KYC checks on cryptocurrency exchanges leads to fraud, money laundering, and terrorist financing. As a result, in recent months, some exchanges have tightened these restrictions. Similar initiative launched in June by bigger rival Kucoin.
According to data, Bitget claims to have 20 million members globally and a 24-hour trading volume of almost $310 billion. By the end of 2022, Kucoin had 27 million users, compared to more than 100 million users each for the two largest exchanges, Binance and Coinbase.