OKEx, which is one of the leading cryptocurrencies worldwide with a daily trading volume that frequently surpasses $500 million, reported dramatic shifts in know-your-clients verification (KYC) policy requirements.
Customers have to comply to the new KYC demands by August 28 or funds the clients hold will be withheld, and unavailable until appropriate identity verification is provided. These new regulations will also cover all trades that participate in the OKEx Open Partner Program.
Before this change in regulations, no verification details were necessary for the customers to be able to cash out their OKEx funds and clients could’ve had multiple accounts. OKEx advises its clients to merge their holdings into a unique account before this policy change comes into effect. Otherwise, they may lose access to the funds they keep in their accounts forever.
OKEx demands all its clients to comply to its new KYC verification policies
OKEx reports that customers who upgrade to KYC Level 1 by downloading their passports will be allowed to retrieve up to 2 Bitcoin (BTC) per day, which at present is about $13,000. KYC Level 2 and three users will be eligible to collect up to 100 BTC per day, or approximately $670,000. To achieve these levels, clients have to upload other identification documents, along with proof of address documents.
This drastic rise in KYC verification standards may be due to the growing Chinese authorities oppression on cryptocurrency trade. OKEx is based in Hong Kong, an independent region that is more supportive of cryptocurrency, but which is still located in China.
On the other hand, this stricter KYC verification process OKEx implemented may be a correction of the more permissive policies that OKEx adopted until now and which permitted clients to cash out 100 Bitcoin (BTC) daily and keep multiple accounts with no verification.
OKEx has only given its clients five days to conform with the new KYC verification processes, a situation that can catch numerous users off guard.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.