Digital currency exchange Bybit has announced that all users of the exchange will be required to complete Know Your Customer (KYC) verification or risk losing access to several features.
The exchange disclosed the new position via an update on its website pointing to May 8 as the deadline for customers to complete its identity verification. Users that fail to meet the verification will not be allowed to carry out new trading activities and will only be allowed to withdraw their deposits and pay loans.
While there are several verification classes, users must only complete a level 1 identity verification to use the platform. Users that meet the first KYC level will enjoy a withdrawal limit of up to 12 million USDT per month, depending on their VIP status.
Bybit says that upping its KYC requirements was necessary to align itself with global regulators and prevent illicit activities on the platform while providing “convenience and security.” Other perks from completing KYC requirements will allow users to gain access to exclusive offers and interact with Earn products and fiat services.
“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,” the post read.
According to its website, the KYC requirement may take between 15 minutes to 48 hours to be completed, noting that users can make up to five attempts per day in the case of a rejection. Upon confirmation, Bybit customers cannot alter their details unless legal changes have been made to their names or nationality.
Bybit notes that it will not accept insurance documents, mobile phone statements, or bank transaction slips as proof of address. However, users may submit utility bills, tax returns, and official bank statements as proof of address documents.
Cleaning up its act
Bybit had previously come under the regulatory crosshairs of Japan’s Financial Services Agency (FSA) for carrying out operations in the country without prior registration. The exchange noted that it had opened talks with regulators to align itself with existing rules to be wholly compliant.
After satisfying the requirement of Dubai’s digital currency regulators, Bybit opened a new headquarters in the city, describing the move as a pivotal moment for the exchange. In March, Bybit launched a Mastercard-powered debit card after temporarily freezing USD transfers following the collapse of U.S.-based Silvergate.
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