Poloniex Starts to Strictly Impose its Know-Your-Customer and Verification Requirements
US-based cryptocurrency-only exchange Poloniex has announced that it is already implementing a customer registration process that is in line with the wider financial industry.
The company added that the deadline for its identification verification program will be announced within the first quarter of 2018.
In its announcement on December 27, 2017, the exchange said that all its legacy accounts which failed to complete the same verification process as its newer account holders who must undergo KYC due diligence.
The move maybe part of the exchange’s efforts to comply with existing regulations and to better ensure that its services are not utilized as a conduit for criminal activities like money laundering.
Based on the exchange’s announcement, the legacy account holders who fail to comply with the requirement deadline will have their accounts disabled. This means that they will no longer conduct transactions like deposit, trade, lend, and open orders.
However, they will be given an eight-week grace period before closure where the only activity that they can be able to do is withdrawal. The withdrawal transactions will be subject to a maximum limit of $2,000. If at any point, the legacy account holders will be able to comply with the requirements, the full functionality of their accounts will be restored and their daily withdrawal limits will be raised to $25,000 equivalent.
Poloniex did not provide a definite figure on the number of legacy accounts that will be affected by its new policy.
Poloniex is one of the longest-running digital currency-only exchanges in the US. The company is incorporated in the state of Delaware. Based on data from CoinMarketCap, Poloniex registered a trading volume of $860 million in a 24-hour period as of December 29.