Hong Kong-based cryptocurrency exchange OKEx is set to implement stricter Know Your Customer (KYC) requirements.
According to an announcement on its website, users of the platform must comply with the new KYC rules or else they will be unable to withdraw their funds.
Previously, OKEx users were able to withdraw up to 100 BTC per day without needing to undergo verification. However, the platform has now rolled out a new multi-tiered KYC verification system across all of its OK Partner exchanges as well.
Each tier requires more documentation than the previous tier and allows for higher withdrawal limits. Teir 1 requires full legal name and passport or government-issued ID number, with withdrawal limits set at 2 BTC every 24 hours.
For tiers 2 and 3, users are required to provide all Tier 1 requirements plus photos of passport or government-issued ID and other documents proving residency. For the tiers, withdrawal limits are set at 100 BTC every 24 hours, which are subject to increase based on user’s trading volume.
All users are required to complete Tier 1 verification in order to withdraw funds, but a user can own only one account.
With cryptocurrencies rising in popularity among investors looking for quick cash, there have been a number of calls for more stringent regulations to prevent money laundering and fraud. Just last week, Bitmain, one of the biggest Bitcoin mining and the largest ASIC chip producer in the world, also introduced a Know-Your-Customer [KYC] policy.
The Bitcoin mining company said the full-KYC is required by all the customers in order to avail the mining equipment provided by the platform. It cited the reason for the company to introduce the KYC is down to regulatory compliance.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
