Crypto Exchange CEX.io Now Requires AML Verification

UK-based cryptocurrency exchange CEX.io recently announced a major change to its operations: CEX.io will require users to complete anti-money laundering (AML) verification moving forward.

The news was announced via a press release earlier today.

The London-based crypto exchange has declined the option of allowing users to remain anonymous. Moving forward, users will be required to verify their identities to help prevent criminal activity on the platform. The move is expected to help CEX.io stay abreast of financial services regulations in the EU and around the world.

Earlier this week, a G7-funded research group discovered that many UK-based cryptocurrency exchanges were ignoring the UK’s laws on money laundering and counter-terrorism financing regulations. CEX appears to have made the AML announcement in response to this news.

CEX was founded in 2013 and claims to be a self-regulated entity. In the U.K., virtual currency exchanges are required to abide by the European Union’s Fifth Anti-Money Laundering Directive, which specifically covers custodian wallet providers and crypto exchanges.

In the press release announcing the news, CEX.io claimed the move was made to “provide users with high-level and reliable service” moving forward.

“We have always understood the importance of dealing with virtual currency within a legal framework, so mandatory verification for customers who transact in fiat currency was introduced long before the Fifth Anti-Money Laundering Directive was adopted in the EU,”

explains CEX’s Regulatory Affairs Counsel, Serhii Mokhniev, as quoted by Finance Magnates.

The Fifth Anti-Money Laundering Directive is not scheduled to take effect until January 2020. However, financial firms – including cryptocurrency exchanges – are preparing for the changes today.

Complicating things even further is that the United Kingdom may not be an EU state by that point.

Nevertheless, exchanges like CEX.io cater to international audiences, so it’s in their best interest to stay up-to-date with major regulatory changes like the one announced by the EU.

Today, CEX.io claims to have 2.5 million users worldwide. The exchange is also a registered member of America’s FinCEN, which is a regulatory branch of the U.S. Department of the Treasury.

CEX has played a crucial role in British crypto exchange history. Founded in 2013, the exchange has 5 years of experience attracting users from across the UK and around the world. CEX is also a founding member of CryptoUK, an organization dedicated to representing crypto businesses in the country while also influencing government policy.

CEX.io supports eight of the world’s most popular cryptocurrencies along with four fiat currencies. However, the exchange is relatively small compared to some of the biggest entities in the world, handling just $5 million in volume over the last 24 hours, placing it in the #71 position of the top cryptocurrency exchanges by trading volume.

Top pairs on the exchange include BTC/USD, BTC/EUR, and ETH/USD.