Cryptocurrency exchange Bybit has announced new restrictions for its customers whose identities are not known. The move is aimed at improving the platform’s security and compliance, reassures Bybit, which recently laid off 30 percent of its staff due to the crypto market downturn.
No KYC, No access to all services at Bybit
In an effort to strengthen the security and compliance of its platform, cryptocurrency exchange Bybit has announced new rules related to customer identification.
According to a statement, as of Thursday, December 15, 2022, customers who have not met KYC requirements will have some restrictions imposed on them. As a reminder, KYC (Know Your Customer) is a set of procedures that require financial institutions to verify the identity of their customers.
In particular, Bybit announces that without KYC verification, customers will not have access to Earn products or Bybit Launchpad. In addition, unidentified customers will not be able to perform Peer to Peer (P2P) transactions, buy crypto with fiat, earn rewards in the Rewards Hub, or perform transactions involving NFTs.
Bybit also imposes withdrawal limits on users based on their KYC level. While users with KYC can withdraw up to USDT 2 million per day, customers without KYC cannot go beyond USDT 20,000. On the other hand, without KYC, it is impossible to withdraw more than 100,000 USDT per month.
The exchange does not rule out that this restrictive regime will be strengthened in the future for clients without KYC. Thus, Bybit invites its users to identify themselves in order to make the most of the platform’s services.
Bybit‘s restrictions on non-identified users come days after the platform announced a 30% layoff of its workforce. This measure followed the crypto bear market. However, given the timing of FTX’s collapse, it was quickly perceived as a red alert.
In a context where the FTX saga is in full swing with the arrest of SBF, the restrictions imposed by Bybit could be interpreted as a lack of liquidity. This is obviously not the case at the moment. Bybit insists that this measure is just to stimulate users to identify themselves. This could allow the platform to analyze their risk profiles, to prevent money laundering and financing of illegal activities. So for the moment, no worries. This does not prevent us from taking precautions.
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.