Crypto News- Gracy Chen MD of Bitget, Foresees Stricter Crypto Know-Your-Customer (KYC) Procedures, Potentially Requiring Multiple Annual Verifications
Bitget’s Managing Director, Gracy Chen, has suggested that the crypto industry may witness a heightened emphasis on rigorous Know-Your-Customer (KYC) protocols in the near future. Chen anticipates a scenario where users could be mandated to undergo identity verification multiple times each year.
Gracy Chen MD of Bitget, Predicts Heightened Stringency in Crypto KYC
Bitget, a crypto derivatives exchange and copy trading platform, has already implemented mandatory KYC requirements. These requirements were effective for new users as of September 1 and for existing users from October 1, enabling them to make deposits and engage in trading activities.
Gracy Chen emphasized the necessity of certain procedures for the sustained global operation and the security and stability of their user base. Despite raising concerns among some users, Chen mentioned that the move did not result in any significant issues for the firm.
She stated, ‘These procedures have become essential to ensure the continuous global operation and to provide security and stability for our users.’ Chen went on to address the concerns, saying, ‘Firstly, we are not the pioneers in introducing mandatory KYC, and secondly, it aligns with the prevailing market trend, which was only a matter of time and not an unexpected development. In essence, the adoption of these updated requirements has had a minimal impact on the majority of our users who prioritize a trustworthy and secure platform for their operations.’
Bitget’s decision to implement mandatory KYC procedures follows similar actions taken by crypto exchange competitors KuCoin and Bybit earlier this year.
Gracy Chen expressed confidence that, in time, users will come to value the role of KYC in fostering trust, as it serves to protect crypto companies and users against fraudulent activities and money laundering. She stated, ‘Through compliance with Anti-Money Laundering (AML) and KYC regulations, we demonstrate our dedication to transparency, which in turn instills confidence among our partners and brings us in alignment with global regulatory standards.’
This move coincides with Bitget’s broader strategy to expand its global presence, part of their ‘go beyond derivatives’ initiative. In recent months, Bitget launched a $100 million Web3 Fund in April, made a $30 million investment in the decentralized BitKeep multi-chain wallet in March (subsequently rebranded as the Bitget Wallet), secured a $10 million strategic investment from crypto investment firm Dragonfly Capital in April, and introduced a cryptocurrency loans product in July.
Although KYC has been a component of Bitget’s procedures since the platform’s inception in 2018, there were previous scenarios where users could access certain services without undergoing full KYC, particularly if they were not dealing with substantial amounts. Chen Clarified, ‘Previously, certain operations that didn’t involve substantial sums of money and access to the full range of services were possible without undergoing KYC. However, we have now shifted to a model where full KYC is mandatory for access to all exchange services.’
Leave a comment