The largest cryptocurrency option exchange in trading volumes, Deribit, will start mandatory government ID verification to maintain KYC/AML compliance rules.
Panama-based cryptocurrency options exchange, Deribit, requires all users on the platform to be ID verified by the end of the year. As per the official Deribit Twitter, it was confirmed that the tier verification model on the platform would be abolished for a blanket ID verification process for all users on the platform.
This follows a recent announcement by rival and troubled exchange, BitMEX, who will start ID verification on their platform. Both derivative exchanges will require new users and current ones to submit a copy of government ID verification, including passports, driver’s licenses, or legitimate and valid identification documents.
As the world of cryptocurrencies embraces the FATF “Travel Rule,” more entities are expected to join the bandwagon – tougher KYC/AML compliance being implemented. The official Twitter account said,
“New clients will be required to adhere to these market standard conditions in order to be able to open an account.”
“Existing clients will get one month from that date to become verified and upload both required documents (if not already). A formal announcement will follow soon including final timing.”
The new changes replace the old tiered system that allowed users to deposit and withdraw up to 1 BTC (~$13,000) from Deribit exchange without any KYC verification or ID requirements. All users on the derivatives exchange will be forced to verify their ID before trading or withdrawing any amount.