Bitget Crypto Exchange Strengthens ID Verification in Response to Regulator's Fraud Concerns
Bitget Enhances Customer Verification Process Amid Regulatory Scrutiny
In response to mounting concerns over lax identity verification practices in the cryptocurrency industry, Bitget, a Singapore-based crypto exchange, is set to bolster its know-your-customer (KYC) requirements, aiming to ensure a more secure trading environment.
Starting from September 1, new users joining the platform will be required to undergo level 1 KYC verification, involving the submission of identity documents such as passports and completion of facial authentication. This move comes in the wake of regulatory criticism targeting crypto exchanges for their alleged negligence in enforcing stringent KYC checks. These lapses have been blamed for facilitating illicit activities like fraud, money laundering, and terrorist financing within the crypto space.
The initiative aligns with a broader industry trend of tightening customer verification protocols to address these regulatory concerns. Bitget's decision follows the introduction of a similar program by its larger competitor, Kucoin, in June.
Current Bitget users are not exempt from the changes. They will be granted until October 1 to complete the enhanced verification process. After this deadline, they will only be able to perform activities such as withdrawing funds, canceling orders, or closing trading positions.
Bitget boasts a user base of 20 million individuals worldwide and records a substantial 24-hour trading volume of approximately $310 billion, according to CoinGecko's data. In comparison, Kucoin reported 27 million users as of the end of 2022, while major exchanges like Binance and Coinbase each claim over 100 million users.
By implementing these stricter measures, Bitget seeks to strengthen its commitment to regulatory compliance and user security, contributing to the industry's ongoing efforts to create a safer and more trustworthy crypto trading environment.