Most Cryptocurrency Providers Around The World Not KYC Compliant

Most Cryptocurrency Providers Around The World Not Know Your Customer Compliant, or Weak User Gateways

As virtual currencies keep expanding, there are more and more companies that are starting to offer cryptocurrency-related services to the community.

But according to a research conducted by P.A.ID Strategies, 68 percent of companies in the European Union (EU), and the United States (US) only ask for an email address and a telephone number.

Crypto Providers Not KYC Compliant

cryptocurrency-exchange-kyc-know-your-customer-complianceAt the moment, just 32 percent of the crypto exchanges in the EU and the US conduct a compliant Know-your-Customer (KYC) process. The study was commissioned by Mitek, a company that sells identity verification technology and operates in different countries in the world.

Regulatory agencies have been increasing regulations over crypto exchanges and other services providers, but some of them are not being compliant. The main intention behind these KYC rules is to avoid criminals operating in the market, reduce illegal activities and reduce tax avoidance. For example, KYC procedures are mandatory for all banks in the US and the EU.

Cryptocurrencies work in different way because they are anonymous and allow criminals to get financed. Additionally, individuals may be avoiding taxes by not declaring their possessions.

The study conducted checked 25 different companies in the two jurisdictions and discovered that just 32% is compliant.

Only four exchanges were able to have an ID verification score equal to 9/10 including CoinbaseGemini, Poloniex and itBit. Luno and Bonpay had 8/10, Mercantox, Kraken, Bitstamp and CoinCorner 7/10, QuadrigaCX, Cex.IO, Blockchain Wallet, Wirex, and Likke Wallet obtained 6/10.

Exmo, Coinjar, Liqui, local Bitcoins,, BitPanda, Bitwala, SpectroCoin and Indacoin, obtained a score under 5.

In the future these services providers will have to provide better KYC information to regulatory agencies in the United States and the European Union if they want to keep operating.

Get Free Email Updates!

*Action Required* Enter Your Email for Trending Crypto News & Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

[Author Alert] The author’s opinions above are solely based on their own self-conducted research. Assume any and all authors are using, holding, trading and/or buying cryptoassets mentioned as a portion of his or her financial portfolio. Use information at your own risk, do you own research, never invest more than you are willing to lose.

[Domain Disclosure] The crypto-community content sourced, created and published on BitcoinExchangeGuide should never be used or taken as financial investment advice. Under no circumstances does any article represent our recommendation or reflect our direct outlook. We b-e-g of you to do more independent due diligence, take full responsibility for your own decisions and understand trading cryptocurrencies is a very high-risk activity with extremely volatile market changes which can result in significant losses. Editorial Policy \\ Investment Disclaimer

Coin Market Cap Price Change 24 Hour Volume
BTC $202.83B $11,408.2068 4.71% $8.24B
ETH $33.45B $313.6570 1.74% $2.75B
XRP $19.95B $0.4688 0.81% $580.52M
BCH $8.51B $476.6052 0.64% $372.49M
LTC $8.43B $135.2041 -0.30% $992.23M
EOS $6.61B $7.1771 -0.26% $911.11M
BNB $5.18B $36.7177 -0.85% $224.47M
BSV $4.29B $240.0574 1.32% $171.67M
USDT $3.55B $0.9948 0.08% $7.01B
TRX $2.61B $0.0392 1.21% $349.39M

Get 3 Free Bitcoin eBooks for Limited Time Only

Receive three exclusive user guides detailing a) What is Bitcoin b) How Cryptocurrency Works and c) Top Crypto Exchanges today plus a bonus report on Blockchain distributed ledger technology plus top news insights.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.