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  • As countries has started to come up with regulations governing the cryptocurrency industry globally, cryptocurrency exchanges have implemented necessary changes to comply with new laws as well. For example, BitMEX exchange aims to start a know-your-customer (KYC) program for its existing customers this month and requires ID checks for verification as part of its KYC program..

    BitMEX announced that it will launch a user verification program starting August 28, 2020, as Cointelegraph reported. In the next six months, the exchange will require all of the platform’s customers to provide ID checks for verification as part of its KYC program.

    The cryptocurrency derivatives exchange will confirm its users’ location and identity by asking them to upload the necessary documents, TheBlockCrypto.com reported. “Individual users will be prompted to upload a photo ID and proof of address, take a selfie, as well as answer a few multiple-choice questions about source of funds and trading experience,” the company said in a post. BitMEX exchange added that its User Verification Programme is like the ID checks implemented on other exchanges and should take just five minutes to complete.

    The exchange will assist corporate users through the verification process. “Corporate accounts will continue to go through the existing verification process, with our team ready to guide them through as quickly and efficiently as possible,” BitMEX said.

    BitMEX is one of the largest cryptocurrency derivatives exchanges in the world started in 2014. However, the platform has not needed user ID checks since it was established.

    With countries already enacting their respective cryptocurrency laws, BitMEX aims to ensure that it keeps up with the times and comply with regulatory requirements. “Today, user identity verification is increasingly expected in order to meet evolving international regulatory standards, and is an important part of building trust in the cryptocurrency ecosystem,” the exchange noted.

    BitMEX explained that proper verification of ID checks will be useful in cases of a hack or dispute for company and customers. “Practical customer security is greatly enhanced by identity verification, allowing BitMEX support personnel to reliably verify the actual owner of an account in the event of a dispute, hack, or incapacitation,” the exchange added.

    To encourage users to verify their accounts, BitMEX will be launching a Trading Tournament in the coming weeks. Sizable prizes are up for grabs but the promotion will only be available for those who already completed verification.

     

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