The latest strategy of crypto-exchange Bitget is to offer its users a no-deposit bonus for KYC verification. But what is the Know-Your-Customer procedure and why is it so important. Here is a brief description.
Summary
Bitget: the crypto-exchange is offering its users a no-deposit bonus for KYC verification
The popular crypto-exchange Bitget has announced a new reward for its users: a no-deposit bonus for KYC verification.Â
This is a perk offered that incentivizes users to familiarize themselves with the Know-Your-Customer procedure, which has also become increasingly important for the crypto industry.
And in fact, KYC is nothing more than the first stage of due diligence in Anti-Money Laundering (AML), as well as helping financial institutions determine the level of risk associated with a customer.
In this sense, even crypto-exchanges often require KYC to comply with AML regulations. By verifying the identity of their customers, crypto-exchanges such as Bitget can help prevent criminal activities such as money laundering and terrorist financing.
Not only that, this decision builds on Bitget’s policy of updating its KYC requirements, which went into effect last September. The ultimate goal of the crypto-exchange is to strengthen the user identification process so as to make trading a secure environment.Â
Bitget and the user reward on KYC: but what are the benefits to the crypto-exchange?
Bitget provides the new premium for its users in exchange for their adherence to the KYC verification, which has also become essential for accessing all services of the crypto-exchange.Â
At the same time, the Know-Your-Customer procedure also becomes a benefit for Bitget itself and all crypto-exchanges that adopt it.
And in fact, by conducting KYC due diligence, a crypto-exchange can reduce legal risk from litigation or regulatory fines.
Not only that, crypto-exchange users may also place more trust in the platform if it includes KYC. And in fact, customers may see the procedure as a preventive measure to safeguard their very accounts.
Other benefits for the crypto-exchange that adopts KYC may include greater overall stability of the market, or its more effective intervention in the event of hacking and data breaches, but most importantly, a reduction in the risk of scams and money laundering.
The abandonment of Hong Kong’s VATP license
Recently, Bitget has been in the news for its decision not to seek Hong Kong’s Virtual Asset Trading Platform (or VATP) license.Â
Indeed, because of this very abandonment, the dedicated website will cease all its activities as of 13 December 2023.
The crypto-exchange’s invitation to its users is to withdraw all their assets from BitgetX by the deadline, after which they would lose the ability to get them. Yes, because after 13 December BitgetX will no longer exist.
