BitMEX Moves To Compulsory KYC For All It’s Customers
BitMEX, a cryptocurrency derivatives exchange, has launched a user verification program that requires all customers to complete identity checks within the next six months the steps are taken to slow down the money laundering and other such activities.
However, it does offer a sweetener that is only available to verified customers. Given that many countries around the world have explicit rules for the crypto industry, Radclyffe noted that user verification will help the exchange meet the new operational requirements. Founded in 2014, BitMex has become one of the largest derivatives exchanges globally, but the platform does not require user verification.
User verification will enable BitMEX to better understand its diverse user base, allowing the platform to develop customized products. According to Radclyffe, the verification program of Bit MEX should only take five minutes. In the coming weeks, all customers will be checked by simple online check-in progress.
The Requirements To Proceed
Each customer must upload a photo ID and address. They will also be faced with multiple-choice questions about their fund and trading experience. Individuals will go through the same process as identity checks carried out by other cryptocurrency exchanges.
The Quick Process
Radclyffe said users who have undergone an online financial services audit will be familiar with it. This is particularly relevant as BitMEX launched a new program for its corporate customers on June 22, which offers enhanced security and accounting features. Radclyffe says it will use the same verification process that was already in place. Still, that new features could be added to make it easier to drive the process forward.
The Good and The Bad Sides
Back in March, it was already reported that the exchange was offline for 25 minutes, prompting some members of the crypto community to question whether there was an unfair game going on behind the scenes. BitMEX made the final withdrawal connected with the Twitter hack on July 15, and Radclyffe said identification verification improves customer security. The mandatory review is likely to be unpopular, but for others, it gives them more confidence in the platform.
