- Bitget has joined the growing list of exchanges to advance stricter KYC requirements in recent months.
- The new rules will prevent unverified users from performing several critical operations on the platform.
- This article breaks down the new requirements and what users must do to avoid account restrictions.
Policymakers worldwide have continued to sound the alarm on the money laundering and fraud risks posed by the growing adoption of cryptocurrencies.
In response to these concerns, more exchanges are strengthening their Know Your Customer (KYC) rules to avoid regulatory scrutiny. Bitget is the latest to join the bandwagon, following similar announcements from KuCoin in June and OKX on Friday, August 18.
Not sure how this affects you? This article breaks down Bitget’s update to its KYC requirements and what it means for customers.
Bitget Updates KYC Rules
In a blog post on Monday, August 21, Bitget disclosed that it was updating its KYC requirements to comply with global regulatory standards.
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According to the exchange, the move to update its KYC requirements would better protect the rights and interests of customers while creating a more secure trading environment.
Customers will be expected to comply with the new requirements starting September 1 or face account restrictions.
How Bitget’s KYC Update Affects You
Bitget’s KYC update will affect new and existing customers, requiring them to complete its level 1 KYC verification process to access the full range of services the platform offers, including the deposit and trading of crypto assets.
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To complete the level 1 KYC verification process, you must complete a form requiring your name, nationality, and date of birth, per a company blog post from July 19. Additionally, you will be required to provide a valid government-issued ID and complete a facial identification process.
This process will be made compulsory for new users to access Bitget’s complete services starting September 1. On the other hand, customers who signed up before September 1 and have yet to complete the level 1 KYC verification process will be allowed to operate without restrictions until October 1.
According to Bitget, past the set deadlines, accounts that fail to complete the level 1 KYC verification process can only conduct withdrawals, cancel orders, redeem subscriptions, and close trading positions.
Can I Restore Full Services to My Bitget Account Past the Deadline?
DailyCoin reached out to Bitget to find out if users can restore complete services to their accounts if they fail to meet the deadline. Bitget Managing Director Gracy Chen disclosed that this could be done simply by completing the level 1 KYC requirements.
“Users who complete the KYC verification after the deadline will be able to restore full service,” Chen noted in response to DailyCoin‘s request for comment, maintaining that account restrictions will apply till users complete the verification process.
Is My Data Safe with Bitget?
Bitget claims to employ “appropriate measures to secure customer data per its privacy policy. These measures include fault-tolerant storage, login restrictions, Secure Socket Layer Encryption, and a firewall.
Bitget also assures users that it does not sell or transfer user information, though it may disclose them when required by law like any other centralized crypto exchange.
Bitget’s Chen contended that the security of customer data was a top priority when DailyCoin asked how the exchange planned to secure customer data in line with the new KYC requirements.
"Protecting user privacy is a core priority of our KYC process. We utilize strict protocols and advanced tools to guarantee users' personal data remains secure. User identity and confidential information are safeguarded every step of the way. Our KYC vendors have to go through a security assessment before implementation to ensure all our vendors are up to Bitget's security standards and our customer data are well protected," the Bitget executive asserted.
Still, as a disclaimer in the crypto exchange’s privacy policy highlights, the security of information shared over the internet can not be “absolutely” guaranteed.
On the Flipside
- Compulsory KYC is becoming standard practice for centralized crypto exchanges as regulators and lawmakers establish anti-money laundering (AML) rules for crypto.
- Users who prefer not to share their data can always opt for decentralized exchanges like Uniswap.
Why This Matters
With its latest move, Bitget joins exchanges like KuCoin and OKX, which have recently tightened KYC requirements. The growing trend highlights the desire of crypto firms to operate in compliance with applicable laws.
Read this to learn more about KuCoin’s decision to make KYC compulsory:
KuCoin Is Making KYC Compulsory: Here’s What You Need to Do
Grayscale recently sparked excitement about the approval of a Bitcoin ETF. Find out more:
Grayscale Bitcoin ETF Approved? Job Listing Sparks Speculation
