Bybit, a globally renowned crypto trading platform, has recently overhauled its policies, particularly with regard to catering to global policies such as KYC.
In this connection, Bybit made several changes in its policy concerning users, their access, and rights.
The amendments made in Bybit policies show that some restrictions have been put in place. For instance, a restriction has been imposed upon those users whose verification procedures are still pending and hence unverified.
It has been announced by the globally popular crypto platform, Bybit, that for ensuring strict adherence to KYC requirements, it has amended policies.
Bybit told users that they have been given a timeframe to complete their verification procedures in line with KYC standards.
Verified Access Only
The announcement detailed that from now on every user will be allowed access to the platform only after the verification.
Without verification, users would not be able to use Bybit Launchpad nor can they derive any benefits from Earn products, told Bybit.
The policy change also suggests that meeting KYC standards would be mandatory even when digital assets are acquired against non-digital currency deposits.
Furthermore, peer-to-peer trading would only be allowed subject to KYC standards and requirements. Similarly, the One-Click Buy option feature shall be made available to users from 15th December again subject to KYC standards.
Similarly, the users who opt for claiming rewards under the Rewards Hub shall go through mandatory identity verification.
In addition, KYC standards shall also become applicable to users’ Non-Fungible Tokens (NFTs) operations and activities.
Strict rules and procedures have been introduced by Bybit, particularly with regard to buying and selling of NFTs. However, KYC standards shall apply to such transactions only if the transaction exceeds funds over $10,000.
Bybit told users, who are involved in NFT operations that strict rules shall be made applicable from 15th December 2022.
Also, withdrawals and deposits pertaining to NFT purchases shall also be affected, told Bybit.
Future Expansion of KYC
It has been further told by Bybit that in the future it shall be expanding users’ compliance towards KYC standards. Meanwhile, Bybit has requested users to immediately look at the announcement for keeping them up-to-date.
The announcement further revealed that further changes shall be made to the firm’s withdrawal limits. It said that for aligning withdrawals with the KYC standards, it shall be modifying the limits by 20th December 2022.
Stablecoin Withdrawal Limit Capped
The firm detailed that the withdrawals of users, who fail to meet the KYC standards, shall be capped.
It clarified that Tether and USDT stablecoins’ withdrawal limits have been capped at 20,000 and 100,000 respectively per month.
The objective behind Policy Modification
It has been informed Bybit that new rules have been put in place to ensure transparency in meeting KYC standards.
Bybit emphasized that the crypto industry is currently subjected to strict scrutiny and oversight by regulators because of FTX’s downfall.
It said that one of the reasons behind FTX’s downfall was not ensuring compliance with KYC standards. The firm also claimed that FTX was not adhering to standard practices because of this the liquidity crisis erupted.
This policy change hasn’t been the first in recent times. Earlier in the past month, Bybit allowed layoffs considering the bearish conditions in the market.
However, this time the change has been brought under the firm’s efforts of ensuring compliance with global policy standards of KYC.
The regulators have grown very strict as well as sensitive against the slightest of anomalies they are detecting in the cryptocurrency industry.
Surprisingly, the major cryptocurrency exchanges operating for several years have come under regulatory microscopes.
It is the major crypto exchanges that are responsible for catering to millions of users and their funds that are in billions of dollars.
Therefore, the exchanges have to become as compliant as possible to remain on the same page as the regulators.