In terms of trading volume, Bybit, the world’s fifth largest cryptocurrency derivatives exchange, is planning to implement the “know your customer” rule.
A Bybit spokesperson told Cointelegraph that Bybit will introduce KYC procedures from July 12 to help better protect user accounts and funds.
Individuals will have two levels of KYC verification, and the Bitcoin withdrawal limit is 50 Bitcoins (Bitcoin) And 100 bitcoins. A Bybit spokesperson pointed out that in order to obtain KYC level 1 verification, users will need identification documents and facial recognition, while KYC level 2 requires additional address proof. The enterprise has a KYC verification level with a limit of 100 BTC.
A representative of Bybit stated that the exchange is introducing KYC in anticipation of the launch of its spot exchange and hot wallet in order to provide users with the “most secure experience”, adding:
“Through these exciting new features, we expect transaction volume to increase significantly. As we expand our products beyond derivatives, we are excited to be able to bring spot transactions the same as users already associated with Bybit Level of quality service.”
Some crypto enthusiasts subsequently stated that Bybit’s new KYC policy will have a negative impact on the exchange’s trading volume. “Bybit’s trading volume will dry up. Why are you kyc there? In fact, even if you want to do this, it is not enough for good communication,” Tradeboi Carti famous On Twitter.
Bybit has recently become the subject of increasingly stringent scrutiny by global financial regulators. In mid-June, the Ontario Securities Commission of Canada announced that it would Hold a hearing against Bybit Regarding cryptocurrency exchanges suspected of violating Canadian securities laws. Earlier, the Financial Services Agency of Japan warned that Bybit is not registered Operating encryption services in the country.
March, Bybit suspends service to customers In the UK, the Financial Conduct Authority banned retail crypto derivatives trading.