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Bitget, the prominent cryptocurrency trading platform, has recently announced a significant change in its user policy, to take effect by September 2023. The platform will make it mandatory for its users to complete KYC verification.
Regulators across the world are exerting pressure on all centralised crypto exchange platforms to conform to regulatory requirements, and KYC (know your customer) is one of the most basic of these requirements.
Bitget’s decision is seen as an effort to align with global regulatory standards and increase the security measures on the platform. By ensuring all users are KYC-verified, Bitget aims to establish a safer trading environment and curtail potential misuse or illicit activities.
According to a Bitget support post on the subject on its Announcement Centre, all newly signed-up users are obliged to complete a level 1 KYC verification requirement. Users signed up before this date have to complete this same requirement by 1 October 2023.
This mandatory KYC verification is also expected to provide a safeguard against fraudulent accounts, ensuring a more transparent and accountable trading environment. Such rigorous measures reflect Bitget's dedication to prioritising user safety and compliance, all while striving to uphold the platform’s reputation in the crypto community.
Moreover, the move is in sync with the broader trend in the cryptocurrency industry, where regulatory compliance is increasingly becoming a focal point. Many platforms are now adopting robust verification processes to meet the regulatory demands of different jurisdictions, with Bitget's announcement further cementing this trend.
A contrary view
However, some exchange users will feel that they need to protect their identity when trading crypto, for all sorts of reasons. After all, crypto did grow out of a distrust of the banking system and of the regulators that many believe are just there to perpetuate the continuation of the current traditional financial system.
Decentralisation is the key to this endeavour, and the race is on for the current so-called decentralised exchanges to really up their game and strengthen their protocols such that anyone can trade without cost-increasing and slow middlemen getting in the way. Crypto should be about ultra-fast and efficient finance and not central planners attempting to control and smother.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.