Bybit, a leading cryptocurrency exchange, has announced that it will require mandatory Know Your Customer (KYC) identity verification for all products and services offered on its platform starting May 8. Prior to this announcement, users without KYC verification had a daily withdrawal limit of 20,000 USDT on Bybit.
According to the April 24 update, Bybit users who have not completed KYC by May 8 will only be able to “close existing open positions or orders, return loans, or withdraw. Any new trading activities will be restricted.” Non-KYC users on Bybit had a daily withdrawal limit of 20,000 Tether and a monthly withdrawal limit of 100,000 USDT before the update.
Users who have completed level one KYC on Bybit could have a withdrawal limit ranging from 1 million USDT to 12 million USDT, depending on their VIP status. Bybit said that the new KYC measures will take anywhere from 15 minutes to 48 hours to be implemented.
In supporting the decision, Bybit outlined the need for security and compliance, prevention of illicit activities, and providing enhanced services and convenience in case of lost credentials. The exchange also emphasized that the KYC measures are in line with global regulatory standards and are necessary to maintain a secure and trustworthy trading environment.
Bybit was founded in 2018 by Chinese entrepreneur Ben Zhou and is currently headquartered in Dubai, UAE. The exchange has experienced significant growth in recent years and has become a popular platform for trading cryptocurrencies.
However, earlier this month, the company was flagged by Japan’s Financial Services Agency for allegedly conducting business inside the country without proper registration. Bybit has denied any wrongdoing and said that it is working to resolve the issue with Japanese regulators.
Last month, Bybit introduced a Mastercard-powered debit card that allows users to pay in crypto. The move came just days after the exchange halted United States dollar transfers after the collapse of Silvergate Bank.
The introduction of mandatory KYC requirements is the latest step in Bybit’s efforts to enhance security and compliance on its platform. KYC measures have become increasingly common in the cryptocurrency industry as regulators around the world seek to prevent money laundering and other illicit activities.
While mandatory KYC requirements may be seen as a positive step towards ensuring a secure and trustworthy trading environment, some users may be concerned about the privacy implications of sharing personal information with exchanges. However, Bybit has stated that it will take all necessary measures to protect user data and comply with privacy regulations.
Bybit’s announcement comes at a time when the cryptocurrency industry is facing increased scrutiny from regulators and lawmakers around the world. As the industry continues to evolve and mature, it is likely that we will see more exchanges implement similar measures to enhance security and compliance on their platforms.
In conclusion, Bybit’s introduction of mandatory KYC requirements is a significant step towards enhancing security and compliance on its platform. While some users may be concerned about the privacy implications of sharing personal information with exchanges, Bybit has stated that it will take all necessary measures to protect user data and comply with privacy regulations. As the cryptocurrency industry continues to evolve, it is likely that we will see more exchanges implement similar measures to maintain a secure and trustworthy trading environment.