Bitmain KYC Now a Requirement to Buy Crypto Mining Equipment For Regulatory Compliance
Mining Giant Bitmain Begins Mandatory KYC
Bitmain Technologies Ltd., the designer of cryptocurrency mining chips that’s planning a landmark initial public offering, is introducing a Know-Your-Customer [KYC] policy.
The Beijing-based company, co-founded by 32-year-old billionaire Jihan Wu, has stated that full-KYC is required by all the customers in order to avail the mining equipment provided by the platform.
Prominent crypto centric Twitter user WhalePanda points out in his Tweet that the reason given by Bitmain to take this drastic step is for the company to be compliant with regulatory requirements.
Bitmain now requires full KYC to buy miners "due to regulatory compliance requirements". I don't know if this has got anything to do with the IPO or with the government but the timing for sure is interesting. pic.twitter.com/OiVDqM2YZq
— WhalePanda (@WhalePanda) August 23, 2018
Bitmain has sent a mail regarding the new KYC requirements to all the customers. The platform has asked them to complete the KYC procedure ‘as soon as possible’. Customers who fail to complete the process will either be blocked by the platform or restricted from making a purchase. Customers are required to submit their personal information, which includes name, address, identification type and identification number. The information has to be submitted on the platform’s online portal by 24th August.
Most users seem displeased by this development. A Redditor summed up the essence of this KYC requirement by saying:
“Decentralization in the purest sense finished about a year ago when all the stringent KYC/AML bullshit was implemented on the exchanges. The amount of surveillance you have to endure to trade crypto is almost as bad as when using banks. Yet very few people seem to complain about this, as long as prices are going up.”
Bitmain attracting negative press
Bitmain has been gaining attention for all the wrong reasons. Their announcement for the IPO had made them the central talking point of the crypto community, however, there are man to point out that their profits are declining. The company is overvalued.
Additionally, the public still has not forgotten that the company shipped out used and outdated Dash ASIC which led to most buyers losing money. Apart from that the company is heavily criticized for being too intrusive. As one Redditor explains:
“Don’t forget that majority of the miners that Bitman sold has a backdoor that transmit serial number, mac address and ip address back to him. It cross references against sales and delivery records every 1 to 11 mins. It can remotely stop the miners from mining. Shady as f***.”