Kucoin to introduce mandatory KYC

[hugeblack]

Am I misunderstanding what is being said or is the wording of the article in cointelegraph not accurate, they mentioned:

The KYC authentication upgrade introduces mandatory KYC checks for all new users at KuCoin starting from July 15, 2023.

Existing users who registered before July 15, 2023, will also have to complete the KYC process to access some features on KuCoin. Such users will not be able to deposit new funds, while withdrawals will remain unaffected, the announcement notes.

What is meant by users will not be able to deposit new funds? I remember that after more than a year of binance KYC, I sent some coins wrongly to my old binance address, I logged in and managed to withdraw, will deposits to an old Kucoin address be considered as lost coins? This will cause legal problems for them.

The correct wording is that users who registered before July 15, 2023 will not be able to trade after that date and all their positions will be liquidated on July 15, 2023 at 12:00 UTC.

Why the new KYC are not applied with immediate effect?

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[hugeblack]

Deposit addresses will be reset and you will need to have verification in order to generate a new address. This was done, for example, at ByBit when they introduced KYC.

you won't be able to withdraw your coins if you deposited by mistake to an old Kucoin address or will it not appear as a balance?
If they accept deposits to old address and request KYC for withdrawals, then this will look different than:

while withdrawals will remain unaffected, the announcement notes.

[OmegaStarScream]

If you somehow recorded your deposit address, then when you send your funds there, you will most likely receive them, and you will only be able to withdraw funds, since withdrawals will be available for previously registered users even after July 15, but other services will not be available.

you won't be able to withdraw your coins if you deposited by mistake to an old Kucoin address or will it not appear as a balance?
If they accept deposits to old address and request KYC for withdrawals, then this will look different than:

while withdrawals will remain unaffected, the announcement notes.

This is from kucoin's blog article:

For users who registered before July 15, 2023 (UTC), if their KYC is not completed, they will only be able to use services such as Spot trading sell orders, Futures trading deleveraging, Margin trading deleveraging, KuCoin Earn redemption, ETF redemption, and will not be able to use the deposit service (withdrawals are not impacted).

They will most likely reset the deposit addresses (at some point) otherwise what's the point?

Because if they don't do that, and the sell orders and withdrawals remain unaffected, wouldn't that mean that users can still deposit using their previously generated addresses, sell and then withdraw these funds?

[noorman0]

you won't be able to withdraw your coins if you deposited by mistake to an old Kucoin address or will it not appear as a balance?

I think this KYC policy will not interfere with their system which requires them to changing the user deposit addresses again completely, so there is no old address in this case. Regardless they disabled the request showing the deposit address, if you send to the "old" address, imo it will still be swept to their hot wallet. They should be cooperative enough to accept complaints of unwanted transfers.

-snip-
They will most likely reset the deposit addresses (at some point) otherwise what's the point?

Because if they don't do that, and the sell orders and withdrawals remain unaffected, wouldn't that mean that users can still deposit using their previously generated addresses, sell and then withdraw these funds?

I think they simply won't credit your deposit if KYC level <=1.
They seem to still be making concessions to existing users, but have not concluded their policy will remain that way but will be gradually tightened.

[hugeblack]

Because if they don't do that, and the sell orders and withdrawals remain unaffected, wouldn't that mean that users can still deposit using their previously generated addresses, sell and then withdraw these funds?

No, according to my experience with binance, if you mistakenly deposited to one of your old addresses, you can only withdraw those deposits, you will not be able to place buy/sell orders.

Overall, yesterday I took an extra risk and sent $500 to my old USDT TRC20 address that was given to me earlier.
I was able to deposit, exchange, and withdraw up to 4k BUSD.

Therefore, even if the deposit option is not activated, you can send the coins to the deposit addresses, which you will find in the “Deposit History^[1]”

There is another experience after 1 year that I mistakenly deposited to that address, but it seems that I did not create a topic about it (or did not search my posts correctly)
The date of that post was 2022, that is, a long time after KYC was compulsory.

This part seems contradictory to me and may cause some legal problems for them.

and will not be able to use the deposit service (withdrawals are not impacted).

[Daltonik]

I haven't used the kucoin exchange for a long time, to be honest, I was surprised to read the news about the introduction of mandatory KYC, I thought they had already introduced it. It seems that the next stage will be blocking or restricting verified users by territorial affiliation, I looked at my account and see KYC level 3

[jrrsparkles]

If you somehow recorded your deposit address, then when you send your funds there, you will most likely receive them, and you will only be able to withdraw funds, since withdrawals will be available for previously registered users even after July 15, but other services will not be available.

I don't think that the balance will be reflected after July 15 if someone tried to deposit funds to their old address but we can get clear information only if they update their ToS about this.

Most likely we can see a warning like "Never deposit funds to any of your old addresses or you will lose them'(just my assumption though).

[dimonstration]

I’m surprised to see this news that KuCoin will newly introduced mandatory KYC requirements while they are enforcing it already prior to this announcement. I create my Kucoin account last week and I was forced to do KYC since they don't allow me to withdraw my funds without KYC. As you can see on my account  benefits for KYC verified is the feature to withdraw.



I'm really surprised that there's still user that can withdraw on exchange without KYC because new user is already required to do it in able to withdraw funds.

[stompix]

When I first read the news I thought that existing accounts would be spared. However, it appears that not only are new accounts required to undergo KYC verification, but it also states that existing users won't be able to deposit funds unless they are KYC-ed too. Bummer, right?

There was no way for that to be possible, under no regulation would that have been possible, all AML requirements are for every single transaction to have a verified sender, so it's not like an old account could bypass this, the moment it made one transaction it breaks this and the user woud need verification, that said they did prolong this as long as they could but probably they've seen the outcome, and rather than losing all clients they decided to go and obey the new rules.

So, does anyone what could have triggered this?
https://www.coingecko.com/en/exchanges/kucoin#statistics
A 500 mils to 6 billion in trade volume

For users who registered before July 15, 2023 (UTC), if their KYC is not completed, they will only be able to use services such as Spot trading sell orders, Futures trading deleveraging, Margin trading deleveraging, KuCoin Earn redemption, ETF redemption, and will not be able to use the deposit service (withdrawals are not impacted).

They will most likely reset the deposit addresses (at some point) otherwise what's the point?
Because if they don't do that, and the sell orders and withdrawals remain unaffected, wouldn't that mean that users can still deposit using their previously generated addresses, sell and then withdraw these funds?

They are letting a door opened for people who have money and don't want do go throw KYC or can't even do it since they are in some banned jurisdiction, so they will allow them to trade and exit, probably a smart way since they would otherwise be swamped with support tickets and less risk for the mess to go public cause when authorities will see tens thousands of users complaining they would probably start asking Kucoin just how many anonymous users and $ they have there.  

And fast forward I guess they will disable the address from the account so you won't be able to generate a new one unless you're verified and if you do the mistake of sending it to the old one they will probably ask for KYC, a win-win for them, either free money or verified user.

[Potato Chips]

I’m surprised to see this news that KuCoin will newly introduced mandatory KYC requirements while they are enforcing it already prior to this announcement. I create my Kucoin account last week and I was forced to do KYC since they don't allow me to withdraw my funds without KYC. As you can see on my account  benefits for KYC verified is the feature to withdraw.

https://www.talkimg.com/images/2023/06/29/ShU4P.jpeg

I'm really surprised that there's still user that can withdraw on exchange without KYC because new user is already required to do it in able to withdraw funds.

Hmm. your situation sounds different, my dude.

Accounts registered before July 15th should still work fine plus when that day pass and the account is still unverified, withdrawals should still be open. Your screenshot does not look level 1 as well which afaik what the mandatory KYC requires.

Nevertheless, I made a test account minutes before posting this just to be sure and everything seem to work normally.

[dimonstration]

I’m surprised to see this news that KuCoin will newly introduced mandatory KYC requirements while they are enforcing it already prior to this announcement. I create my Kucoin account last week and I was forced to do KYC since they don't allow me to withdraw my funds without KYC. As you can see on my account  benefits for KYC verified is the feature to withdraw.

https://www.talkimg.com/images/2023/06/29/ShU4P.jpeg

I'm really surprised that there's still user that can withdraw on exchange without KYC because new user is already required to do it in able to withdraw funds.

Hmm. your situation sounds different, my dude.

Accounts registered before July 15th should still work fine plus when that day pass and the account is still unverified, withdrawals should still be open. Your screenshot does not look level 1 as well which afaik what the mandatory KYC requires.

Nevertheless, I made a test account minutes before posting this just to be sure and everything seem to work normally.

Do you manage to withdraw your assets without KYC on your newly registered account? I'm new to Kucoin but I don't know what lvl 1 KYC verified looks like because that's what my account shows after I verified it using my valid ID. What's the minimum requirements for lvl 1 KYC verified because submitting 1 valid ID and selfie is the only option I have to verify my account for processing of withdrawal. This is really weird.

[Potato Chips]

Do you manage to withdraw your assets without KYC on your newly registered account? I'm new to Kucoin but I don't know what lvl 1 KYC verified looks like because that's what my account shows after I verified it using my valid ID. What's the minimum requirements for lvl 1 KYC verified because submitting 1 valid ID and selfie is the only option I have to verify my account for processing of withdrawal. This is really weird.

Nahhh I didn't trade but restrictions in relation with mandatory KYC would typically show up on one's withdrawal/deposit page otherwise it'd be a trap and we would see loads of people posting about it all over the communities.

As mentioned above, level one (previously kyc 1 or basic verification) is just filling out information which has been the case even a couple of years ago. I can only guess you were on the special case where in terms of necessary information required to use the service normally, you were moved up.

This is not level 1, this is level 0. The first level of verification involves filling in your First Name, Last Name and passport / driver's card / ID card number. Level 1 verification takes place without automatic checks, after which your withdrawal limits will increase from $20,000 to $25,000.

Typo? Isn't level 0 pretty much unverified?

[rat03gopoh]

Do you manage to withdraw your assets without KYC on your newly registered account? I'm new to Kucoin but I don't know what lvl 1 KYC verified looks like because that's what my account shows after I verified it using my valid ID. What's the minimum requirements for lvl 1 KYC verified because submitting 1 valid ID and selfie is the only option I have to verify my account for processing of withdrawal. This is really weird.

I think it is a specific display after being verified for withdrawal purposes (it has its own wizard on KYC requests, different from regular verification). If you visit the profile page, maybe your verification level status will also be visible.
Btw, was that captured on the app or the browser version? Up to what point did you verify? Sending ID photos or up to face recognition?

[ananyabushra]

Nowadays, almost all the CEXs are moving towards mandatory KYC. I can only think of a few, like Bitget and Mexc, that still permit limitless trading without requiring KYC.

[Z-tight]

Nowadays, almost all the CEXs are moving towards mandatory KYC. I can only think of a few, like Bitget and Mexc, that still permit limitless trading without requiring KYC.

No offence, do you work with or for Bitget? Almost all of your posts have something to do with "how good Bitget is".

By the way, Bitget do not allow limitless trading without KYC, there is a daily withdrawal limit of $50,000 and monthly withdrawal limit of $100,000 ^[1] for users who have not completed their kyc.

[1] https://www.bitget.com/support/articles/360053002431

[Kavelj22]

So that's it, as we've all predicted, this was just a matter of time. Kucoin will officially introduce mandatory KYC starting next month (15 of July)[1]

The current users won't be able to deposit anymore but withdrawal will remain unaffected.

[1] https://cointelegraph.com/news/kucoin-crypto-exchange-to-introduce-mandatory-kyc-in-july

Well, This was expected from the start. It is an inevitable expectation.

I have always been repeating: Do not believe any central platform that claims that it will provide services without verifying the identity of its users, because this is not practically possible unless its team is hidden and no one knows anything about the locations of its servers or where it runs its operations from, which is what can never happen in this type of regulated service.

These platforms provide their services without the need to force identity verification at the beginning of their launch, and as long as the conditions allow for that, but there is no guarantee that they will continue in the same approach. We can find that it has been mentioned in the "terms of use" that any user of the site agrees to. This means that nothing can be objected to, and it is good that Kucoin allowed withdrawals to be made and these conditions are not imposed on those who wish to leave.

[The Sceptical Chymist]

I can only think of a few, like Bitget and Mexc, that still permit limitless trading without requiring KYC.

No offence, do you work with or for Bitget? Almost all of your posts have something to do with "how good Bitget is".
By the way, Bitget do not allow limitless trading without KYC, there is a daily withdrawal limit of $50,000 and monthly withdrawal limit of $100,000 ^[1] for users who have not completed their kyc.

I could have sworn that even mexc had withdrawal limits for non-verified customers--but I could be thinking of some other exchange; there's so many of them, each with different terms of service and everything else.  Never heard of Bitget, btw.  Are they some fly-by-night kind of exchange or have I been missing something right under my nose all this time?

And as I already posted in this thread, I don't have more to say about Kucoin and its new KYC policy but I do wonder how many customers they've lost because of the change.  Seriously, KYC is no small thing in the world of crypto, and with there being so many alternatives (for the moment at least) I have a hard time believing they haven't taken a big hit.  Not that we'll ever know since they don't report their balance sheet like a publicly traded company, but has anyone noticed a drop in volume or any other sign that their user base has started jumping ship?

[Z-tight]

Never heard of Bitget, btw.  Are they some fly-by-night kind of exchange or have I been missing something right under my nose all this time?

Bitget is a scam exchange that @ananyabushra has been shilling for on this forum with AI generated posts, you can check this post where that user was exposed: https://bitcointalk.org/index.php?topic=5461321.msg62617454#msg62617454

And as I already posted in this thread, I don't have more to say about Kucoin and its new KYC policy but I do wonder how many customers they've lost because of the change.

I don't have any statistics or facts on how much users they have lost after they made kyc mandatory, but they are surely going to lose their customers who don't want to submit kyc info to centralized exchanges because of privacy concerns, and they have only been using Kucoin because kyc isn't mandatory, this section of their user base will go for either p2p exchanges or kyc-free centralized exchanges. It happened with localbitcoins, which eventually made them shutdown, they lost most of their customers after they made kyc compulsory, though localbitcoins was a p2p exchange from the start, unlike Kucoin that has always been a centralized exchange, but there are some similarities in the situations.

[Rikafip]

And as I already posted in this thread, I don't have more to say about Kucoin and its new KYC policy but I do wonder how many customers they've lost because of the change. 

Judging by the people around me that I know used Kucoin until they introduced mandatory KYC, I would say that they will loose a lot of customers (me included). I mean, no KYC was the main reason why so many people used Kucoin and once you remove that, people will rather use Binance/Coinbase (at least people I know) or just try to find decentralized solutions.

[hugeblack]

Judging by the people around me that I know used Kucoin until they introduced mandatory KYC, I would say that they will loose a lot of customers (me included). I mean, no KYC was the main reason why so many people used Kucoin and once you remove that, people will rather use Binance/Coinbase (at least people I know) or just try to find decentralized solutions.

I thought that this would happen to Binance after imposing KYC, but the number of their users continued to grow, so it seems that an estimated number of people do not have problems with identity verification and may use Kucoin (the same company that runs OKX) as an alternative, so it is true that the number of users will decrease, but I see OKX is advertised in many places so the number of users will continue to grow.

Those who use Bitcoin as an investment are a large number and they do not care about privacy, on the contrary, they may keep their currencies in centralized platforms.