Cryptocurrency exchange BitMEX will launch a user verification (KYC) program on August 28, which requires all customers to complete ID checks within the next six months.
But as a sweetener, they offer trading competitions that are only available to verified customers.
Although BitMEX was founded in 2014 and has grown to become one of the largest derivatives exchanges in the world, the platform previously did not require user verification.
BitMEX Commercial Director Ben Radclyffe told Cointelegraph that all BitMEX customers must complete the new verification process by 12 February 2022:
“User verification has been on our to-do list. We’ve prepared for this, as it becomes essential to run a scalable, responsible and compliant platform in the future. This is the building blockchain for us to grow and do business in the future. “
With many jurisdictions around the world coming out with explicit regulations for the crypto industry. Radclyffe noted that having a user verification process in place would help the exchange meet the new operating requirements. User verification will also allow BitMEX to better understand their diverse user base, enabling the platform to develop tailor-made products for customers.
KYC Process Only 5 Minutes
According to Radclyffe, the BitMEX user verification program only takes customers five minutes to complete.
Individuals will go through a four-step process similar to ID checks performed by other cryptocurrency exchanges. Customers will be asked to upload photo identification and proof of address. In addition, a number of multiple choice questions relating to funds and trading experience will be asked.
“Users who have gone through online financial service verification will understand this process well,”
Radclyffe said that BitMEX’s corporate customers will continue the same verification process. However new features may be added to make the process easier. This is especially relevant, as BitMEX launched a new program for their corporate clients on June 22 to provide enhanced security and accounting features.
Recently, a recall related to the Twitter Hack on July 15 was made from BitMEX. Radclyffe explains that customer security will be greatly enhanced by identification verification, especially in the event of a dispute, hack or incompetence.