Bybit exchange doubles down on KYC rules

2 weeks ago 11
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Singapore crypto exchange Bybit is set to tighten its customers verification procedures

In an effort to increase customer safety, Bybit is planning to update Know Your Customer (KYC) procedures for its users. The new procedures, expected to take effect from Monday next week, will heighten the informational requirements from customers before withdrawals are allowed. The Singapore-based firm notified users via its website yesterday detailing the new requirements for both individuals and businesses.

The post indicated that the levels of informational disclosure would vary depending on the amount of Bitcoin involved. Users who will not be quite as affected by the to-be-introduced verification rules will be those transacting below 2 BTC – KYC level 0. However, for any transaction exceeding the 2 BTC up to a limit of 50 BTC, users (KYC level 1) would be required to complete the full verification process before proceeding.

The exchange would require that these customers submit personal information, including documentation from the country of origin (passport or ID), the full names, date of birth, and then submit a facial recognition screening procedure. For customers who would seek to withdraw more than 50 BTC, KYC level 3, the procedure would be even more strenuous with the requirement to disclose personal physical addresses with proof from documents such as utility bills, bank documents, or official government acknowledgment of residence.

Bybit also explained that KYC rules applicable to corporate clients would be a bit different. KYC level 0 corporate clients would be able to withdraw up to 2 BTC without the obligation of verification. Clients planning to withdraw BTC above this value would have to meet even stricter requirements.

A certificate of incorporation, personal information from one of the company executives, proof of residence of a UBO owning at least 25% interest in the firm would be required. Bybit further indicated that it would also demand institutional documents, including a memorandum of association and a register of directors.

The whole process of applying for verification would take 15 minutes, with the verification done within 48, barring any exceptions. Bybit also indicated that some customers might receive a request for verification from the exchange. Crypto-exchange firms like ByBit do not directly transact with banks but rather employ the services of a third party. The new requirements would thus only affect crypto transactions.

A Bybit representative explained that the exchange is taking the measures to increase customer safety in anticipation of higher trading volumes from the new platforms that the firm plans to launch.

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