Bybit, a popular cryptocurrency derivative exchange platform, headquartered in Singapore and has offices in Hong Kong and Taiwan has announced an update to its know-your-customer (KYC) policy that will regulate specific activities for unverified users.
Bybit has focused on enhancing trading options which involve spot trading, trading in perpetual contracts and futures as well as margin trading with up to 100x leverage since its inception in 2018. The platform is embedded with impressive features which have separated it from its counterparts.
The new Know Your Customer (KYC) rules and withdrawal limits will come into effect on the 20th of December. The new withdrawal limits are diverse and are determined by the different KYC verification levels. Some of the platform’s services and features such as fiat money, withdrawal limits, and NFT transactions. will also be restricted to users who do not meet the exchange’s verification requirements.
More details about Bybit’s withdrawal restrictions
Starting from Dec. 20th, unverified users of Bybit will be restricted to withdrawing nothing less than 20,000 Tether (USDT) every day and a maximum of 100,000 USDT every month. For instance, users within Level-1 KYC will be enabled to withdraw 1 million USDT every day without the applied limit for monthly withdrawals.
However, Level-2 KYC and Business KYC verifications will ensure that users are able to get close to 2 million USDT daily with no monthly limit. Following this upgrade, KYC verification will also be needed for fiat on-ramp services, claiming incentives in the Rewards Hub, and sending, withdrawing and exchanging NFTs.
Verification is now needed to access the Bybit Launchpad and use Earn products. Passing individual KYC will also be compulsory for acquiring crypto through fiat deposits, peer-to-peer (P2P) trading and the One-Click Buy option starting from Dec. 15, 2022.
On the same date, identity verification will become mandatory for clients who want to claim their rewards in the platform’s Rewards Hub. The new KYC policy will also apply to operations with non-fungible tokens (NFTs).
The stricter rules will be effective for all NFT purchases and sales for over $10,000 per transaction in the NFT secondary marketplace from Dec. 15 and for NFT deposits, withdrawals and purchases from the primary marketplace from Dec. 30, Bybit explained.
Bybit also mentioned that it might extend the KYC requirements in the coming years, imploring users to refer to its official announcements for further details on the matter.
The exchange stated that the new rules come as part of continued efforts to improve its security and compliance. They are being introduced as the whole sector is facing tightening regulations after last month’s collapse of FTX, one of the world’s largest players in the market.
Amidst a bearish and downcasting market, the Singapore-based crypto trading platform announced layoffs earlier this month. According to a report in November, Bybit did not plan to restrict Russian users, despite the city-state’s monetary authority reiterating that licensed exchanges must comply with sanctions.
Users need to meet requirements to enjoy the access provided by crypto exchanges
Cryptocurrency exchanges have begun to reel out requirements in order to attract more commitment and serious attention from users. The FTX meltdown has cast a shady look on cryptocurrency exchanges and many crypto exchanges reported that a good percentage of their users have decided to withdraw their tokens from them and keep them privately.
It is understandable seeing what Bybit is doing. The cryptocurrency exchange is trying to ensure that its users are kept on their toes and more regard is accorded to the exchange.
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