Starting May 8, Know Your Customer (KYC) identity verification will be mandatory for all products and services offered by cryptocurrency exchange Bybit. However, exchange users are free to withdraw their cryptocurrencies regardless of their KYC status.
According to an April 24 update, Bybit users who have not completed KYC by May 8 can only “close existing open positions or orders, return loans, or withdraw. Any new trading activities will be restricted.” Non-KYC Bybit users have a daily withdrawal limit of 20,000 Tether (USDT) and a monthly withdrawal limit of 100,000 USDT.
Users who completed level one KYC on Bybit could have a withdrawal limit between 1 million USDT and 12 million USDT, depending on their level of VIP status. As written by Bybit:
“Bybit ensures that your personal information will be encrypted and protected for privacy and security, and will be used for the sole purpose of verifying your identity to better serve you. It is neither shared nor repurposed for any marketing.”
The exchange said that the new KYC measures would take anywhere from 15 minutes to 48 hours to be implemented. In supporting the decision, Bybit outlined the need for security and compliance, prevention of illicit activities, and providing enhanced services and convenience in case of lost credentials.
Bybit was founded by Chinese entrepreneur Ben Zhou in 2018 and is currently headquartered in Dubai. Earlier this month, the company was flagged by Japan’s Financial Services Agency for allegedly conducting business inside the country without proper registration. Last month, the exchange introduced a Mastercard-powered debit card allowing users to pay in crypto. The move came just days after Bybit halted United States dollar transfers after the collapse of Silvergate Bank.
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Update (4/27/2023 3:53PM UTC): This article has been updated to emphasize that Bybit users can withdraw cryptocurrencies irrespective of KYC status.