Cryptocurrency Exchange Poloniex Mandates ID Requirements for Legacy Users
US-based cryptocurrency-only exchange Poloniex is pushing legacy customers to comply with updated customer identification requirements.
Among the earliest crypto-only exchanges, Poloniex is mandating new customer identification and verification requirements upon legacy account holders as the platform pledges its commitment to complying with all relevant laws as a registered money services firm. The firm also has a deadline, to be announced sometime in Q1 2018, beyond which legacy accounts that haven’t complied with the updated verification requirements will effectively be disabled. The long-running exchange stopped short of revealing the number of legacy accounts currently in use.
Presumably, the new requirements are to comply with revamped know-your-customer (KYC) norms that are being enforced by regulators in the United States and beyond. Users risk seeing their trading and lending disabled if their legacy accounts remain unverified beyond the deadline. Features like auto-renewals in loans and open orders will also go inactive.
Users with margin positions will be offered an ‘8 week wind-down period’ to comply with the new norms, after which the positions will be closed.
Once verified, legacy accounts will also see their daily withdrawal limits increased to $25,000/day, compared to the current limit of $2,000 per day.
Poloniex’s updated customer ID requirements come at a time when global cryptocurrency markets move to comply with local relevant laws that are pointedly mandating KYC rules to avoid money-laundering and tax evasion. For instance, South Korean authorities announced upcoming rules yesterday to ban anonymous cryptocurrency trading in the country, now among the largest crypto-trading markets in the world.
Featured image from Shutterstock.
