Kucoin, one of the leading cryptocurrency exchanges in the world, has announced that it will implement mandatory Know Your Customer (KYC) verification for all its customers by the end of this year. This means that every user who wants to trade, deposit or withdraw on the platform will have to provide their personal information and identity documents to comply with the regulatory requirements.
KYC is a process that verifies the identity and legitimacy of a customer, and helps prevent money laundering, fraud, terrorism financing and other illicit activities. KYC also protects the customers themselves, as it ensures that their funds are safe and secure, and that they can access their accounts in case of any issues.
According to Kucoin, the KYC verification is a necessary step to comply with the global anti-money laundering (AML) and counter-terrorism financing (CTF) regulations, as well as to enhance the security and transparency of the platform. Kucoin stated that it values the privacy and data protection of its users, and that it will only use the KYC information for verification purposes and not share it with any third parties.
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The KYC verification process on Kucoin is simple and fast. Users need to provide their basic personal information, this is a significant change from the current policy, which allows users to trade and withdraw up to 2 BTC per day without KYC verification.
The KYC verification process will be simple and fast, according to Kucoin. Users will have to log in to their accounts, go to the KYC section, and follow the instructions to upload their identity documents, such as passport, driver’s license or national ID card. The verification will take only a few minutes, and once approved, users will be able to enjoy the full range of services and features offered by Kucoin.
Kucoin urged its customers to complete the KYC verification as soon as possible, as it will be mandatory for all users by December 31, 2023. This is a significant step for Kucoin to comply with the global regulatory standards and to enhance the security and transparency of its platform.
TUSD slightly Depegs on Binance-US
In a shocking turn of events, the stablecoin TUSD (TrueUSD) has depegged from its 1:1 parity with the US dollar on the Binance-US exchange. This means that the value of TUSD is no longer equal to the value of USD, and traders can buy or sell TUSD at a different price than USD.
According to some sources, the reason is a lack of liquidity and demand for TUSD on Binance-US, which is one of the few exchanges that supports TUSD trading. Due to low volume and activity, the price of TUSD fluctuated significantly, reaching as high as $1.07 and as low as $0.93 in the past week.
What are the implications of this depegging? For TUSD holders, this means that they are exposed to more risk and volatility than they expected from a stablecoin. They may lose or gain money depending on the price movements of TUSD, which defeats the purpose of holding a stablecoin.
For traders, this means that they can exploit arbitrage opportunities by buying or selling TUSD at different prices on different exchanges. For example, if TUSD is trading at $1.05 on Binance-US and $1.00 on another exchange, a trader can buy TUSD on the other exchange and sell it on Binance-US for a profit. The most obvious solution is to increase the liquidity and demand for TUSD on Binance-US, which would stabilize the price and restore the value of the trading pair against fiat currency.