Popular crypto-exchange Bitget has announced an update to its Know-Your-Customer (KYC) verification requirements that will go into effect on 1 September.
The changes serve to strengthen the user identification process to make trading a secure environment.
Summary
Bitget and KYC requirements updates to make trading a secure environment
Bitget, the popular crypto-exchange, announced that it has updated its Know-Your-Customer (KYC) verification requirements.
To improve the protection of users’ rights and interests, ensure compliance with global cryptocurrency regulations, and create a secure trading environment, #Bitget will change its KYC verification requirements, effective 1 September 2023.
Thus, starting from 1 September 2023, new users on Bitget will have to complete Level 1 KYC verification to access its various crypto services.
Specifically, existing users will have to complete the new KYC procedure from 1 September to 1 October 2023.
During September, users who have not yet completed Level 1 KYC verification will still be able to deposit, withdraw and trade as usual.
After 1 October, however, users who have not completed Level 1 KYC verification will only be able to withdraw, cancel orders, redeem subscriptions, and close positions, without being able to create new trading orders.
Bitget pointed out that the reason for this update on KYC verification requirements, was done to protect the rights and interests of users, so as to make crypto-trading a safe environment.
Bitget: all users will have to complete the new level 1 KYC
The crypto-exchange has thus stated that the next month will be dedicated to increasing the security level of its platform, through the new KYC.
Specifically, Know-Your-Customer is a set of procedures used by financial institutions and other regulated organizations to verify user identity.
As such, Bitget will verify the identity of its users for the purpose of risk assessment, thereby reducing risks for both parties involved.
In this regard, Bitget claims to have 20 million users worldwide and a 24-hour trading volume of about $310 billion, according to CoinGecko data.
Transparency of users and the platform
In contrast to KYC, which provides transparency on users, protecting crypto-trading activity from any fraud, money laundering or terrorist financing purposes, Bitget seeks to ensure transparency of its platform as well.
And indeed, recently Bitget announced that it had reached a record high of over $368 million in its Protection Fund.
That fund had been established in August 2022, with a value of $200 million, as Bitget’s Proof-of-Reserve (PoR) to protect users’ holdings in case of any major incidents, such as hacking attacks or extreme market situations.
Moreover, in November 2022, when the FTX crypto-exchange had collapsed, Bitget had decided to increase the value of that fund to over $300 million so as to recreate confidence in the crypto-community.
From that time to the present, Bitget’s Protection Fund has recorded a monthly value of more than $300 million, except in July 2023, when the fund saw its record high at more than $368 million.
This confirms that Bitget has a ratio of 223% of total reserves, which is more than 2 times the industry threshold of 100%.
