While the majority of the cryptocurrency exchanges are trying to fit within certain regulatory frameworks to expand their compliance, Poloniex is making a turn in the opposite direction. The exchange has now enabled an option that allows users to register a level one account without any KYC (Know Your Customer) requirements.
One of the most popular cryptocurrency exchanges, Poloniex, made an official announcement that they are introducing no KYC account registration.
Per the document, this is something that a lot of the people using the exchange have requested. Users are already able to take advantage of the new feature. They can start trading using only an email address and a password.
However, it’s worth noting that this isn’t applicable to all account levels on the platform. Those who want to register without revealing their personal information would have to bear with certain limitations, as they’d only be able to open a level one account.
While they would have access to unlimited trading and deposits, users will only be able to withdraw $10,000 per day. If they would want to withdraw more than that, they’d have to sign up for a higher level account, which requires verification of personal information.
Undoubtedly, one of the things that cryptocurrencies are most associated with is anonymity. Lack of KYC verification means that a user wouldn’t have to worry about his funds being followed and identity revealed.
However, it’s also worth noting that this goes against what a lot of the lawmakers across the world are working to fend off.
Just recently, Cryptopotato reported that the European Union is on its way to put in effect the 5th Anti-Money Laundering Directive (5AMLD), which will enable even stricter KYC and AML check-ups from cryptocurrency businesses and service providers.
The US has also introduced measures of the kind back in 2013 and it appears that this is what the regulatory trend is shaping up to be.