3 - 5 minute read
Starting May 8, cryptocurrency exchange Bybit will be implementing mandatory Know Your Customer (KYC) identity verification for all of its products and services. This new measure means that users who have not completed KYC by May 8 will have restricted access, limiting them to only “close existing open positions or orders, return loans, or withdraw.” The move is aimed at enhancing security and compliance, preventing illicit activities, and providing enhanced services and convenience in case of lost credentials.
Before the update, non-KYC Bybit users had a daily withdrawal limit of 20,000 Tether (USDT) and a monthly withdrawal limit of 100,000 USDT. However, users who completed level one KYC on Bybit could have a withdrawal limit between 1 million USDT and 12 million USDT, depending on their level of VIP status. Bybit assures its users that their personal information will be encrypted and protected for privacy and security, and will only be used for the sole purpose of verifying their identity to better serve them.
The implementation of KYC measures is expected to take anywhere from 15 minutes to 48 hours to be completed. Bybit’s move towards tighter security measures comes at a time when governments around the world are increasing their focus on regulating the cryptocurrency industry.
According to Bybit, the need for improved security and compliance is the driving force behind this decision. In a statement, the company said, “We believe in the importance of industry-standard KYC practices to ensure the safety of our users’ funds and the integrity of our platform.”
“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 was founded by Chinese entrepreneur Ben Zhou in 2018 and is headquartered in Dubai. It has recently been flagged by Japan’s Financial Services Agency for allegedly conducting business inside the country without proper registration. Last month, the exchange introduced a Mastercard-powered debit card allowing users to pay in crypto. The move came just days after Bybit halted U.S. dollar transfers after the collapse of Silvergate Bank.
The Bottom Line
Bybit’s implementation of mandatory KYC measures is a significant step towards enhancing the security and compliance of its platform. However, it may also result in some users being unable to trade on the platform, which could potentially lead to a decline in trading volume. Traders should be aware of the potential impact of these measures on the asset in question and adjust their strategies accordingly. It is also worth noting that the increased focus on regulation in the cryptocurrency industry is likely to continue, and traders should keep a close eye on developments in this area.