Bybit Updates Trading Platform With New KYC Rules As Global Regulators Clamp Down
Major crypto derivatives exchange Bybit has updated its know-your-customer (KYC) rules.
The new KYC policies would improve security compliance for traders while also helping to protect users' funds.
New KYC Policies Start July 12
Bybit revealed that the new policies would be implemented from July 12, 2021. Documents containing proof of origin (passport/ID), full name, date of birth, and others would now be mandatory as part of the individual KYC requirements.
According to its updated FAQ, Bybit users withdrawing more than 2 BTC in a day will have to undergo facial recognition and share an identity document.
Users who take out more than 50 BTC will also have to show proof of address.
Bybit is revamping its KYC procedures ahead of its planned introduction of Spot trading, Options, and the upgrade of its cold wallet.
The firm plans to roll out trading pairs and assets for its crypto spot trading in the third quarter of this year (Q3), while the options would come much later before the end of the year.
Founded in 2018 by Ben Zhou, Bybit is headquartered in Singapore. The crypto derivatives exchange claims to have about 2.5 million global trading clients in more than 200 countries around the world.
The platform has grown significantly since the beginning of this year. Bybit claims to have recorded more than $1 trillion in total overall trading volume in Q1 2021.The platform also claims to facilitate about $76 billion in daily trading volume.
Bybit Under Regulatory Clampdown
Similar to exchanges like Binance, Bybit has also received warnings from regulators. In May, Japanese financial regulator, the Financial Services Agency (FSA), issued a warning to Bybit for operating without registration.
The FSA had claimed that Bybit allowed residents of Japan access to the exchange without getting permission from authorities.
Bybit has also faced regulatory action in the United Kingdom. Earlier this year, the UK’s Financial Conduct Authority (FCA) issued a warning against Bybit. The regulator also alerted the public that the firm had been operating in the country without authorization. Subsequently, Bybit suspended its services to UK residents from March 31.
In Canada, Bybit also faced scrutiny over accusations surrounding the violations of Ontario securities law. The Ontario Securities Commission filed a statement of allegations against the exchange last month, accusing it of operating an unregistered cryptocurrency trading platform.