Bybit Announces Tighter KYC Regulations On BTC Withdrawals: 3 Things To Know

Bybit Announces Tighter KYC Regulations On BTC Withdrawals: 3 Things To Know


Bybit Announces Tighter KYC Regulations On BTC Withdrawals: 3 Things To Know. Photo: A man watches a screen showing the price of bitcoin at a virtual currency exchange office in Seoul, South Korea, Jan. 16, 2018. (AP Photo/Ahn Young-joon)

Cryptocurrency derivatives exchange Bybit is extending its know-your-customer (KYC) procedures to include more clients starting July 12 in an effort, it says, to help protect users’ funds and improve security compliance.

The Singapore-based exchange, the fifth largest in the world by trading volume, provides online trading and cloud mining for retail and institutional clients around the world. It sent emails to its clients this week informing them about its intention to introduce major KYC policies on its platform in order to “improve security compliance for all traders.”

“Bybit will be introducing KYC for individuals and businesses in mid-July. Through this implementation, users will experience greater security and gain wider access to additional features in the future,” the email read.

1. Withdrawals capped

In a statement following the announcement, Bybit said individuals will have two KYC verification levels with bitcoin withdrawals capped at 50 bitcoin (BTC) and 100 BTC. Companies would also need to complete the KYC verification.

“Different levels of KYC will determine your daily withdrawal limit. You are required to pass KYC level 1 in order to withdraw more than 2 BTC* in a day,” Bybit said in the email to customers.

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Bybit added its KYC updates after Britain’s financial watchdog, the Financial Conduct Authority (FCA) issued a warning against Binance, saying it can’t operate regulated activities without approval. 

2. Hoping for higher trading volumes

Bybit said it was making the change in anticipation of significantly higher trading volumes following the planned introduction of spot trading and the launch of a hot wallet.

Crypto enthusiasts suggested that Bybit’s new KYC policies would negatively affect the exchange’s trading volumes.

“I am monitoring the daily traded volume closely. Positions of 3 top remain the same. Total volume dropped from 350b to 90b. What is interesting the worse drop is Bybit (KYC), Bitmex and CME,” user @Workedia tweeted.

3. Anticipating regulations

Regulators have been cracking down on virtual currency service providers worldwide in order to comply with the crypto recommendations drafted by the Paris-based Financial Action Task Force (FATF), a global watchdog of money laundering and terrorist financing activities.

Bybit faced a hearing on June 21 before Canada’s Ontario Securities Commission when the regulator alleged that Bybit was “accountable for disregarding Ontario securities law and to signal that crypto-asset trading platforms flouting Ontario securities law will face regulatory action.”

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