Poloniex Catching Heat in Crypto Space for Unannounced KYC Flex
Popular crypto exchange Poloniex is requiring existing “legacy” accounts to either verify their identities within two weeks or face indefinite account freezings. The Know Your Customer (KYC) flex blindsided users, causing a wave of grumblings in the space.
Poloniex: IDs Out, Ladies and Gents
Poloniex, which was recently bought out by Goldman Sachs-backed payments play Circle, is now demanding its legacy account users enter the KYC daylight.
That’s per a spate of new warning emails sent to said acount holders, as popular cryptoverse Twitter user WhalePanda pointed out earlier:
— WhalePanda (@WhalePanda) May 27, 2018
The email demands users verify through Poloniex’s new “verification portal.” It’s not a surprising move, seeing as how Poloniex is based in Montana and is presumably catering to the enhanced regulatory realities facing cryptocurrency exchanges in the United States as of late.
Even still, Poloniex users were not enthused by what they considered to be a KYC ambush. The move comes after a late 2017 email that signaled Poloniex users would have forewarning before such an initiative. However, as users have pointed out on Reddit, that forewarning was apparently not the case.
KYC on the Rise
Poloniex is not alone in the KYC-compliance department.
A little over a week ago, top crypto exchange Bitfinex also caught heat because it also made a similar pivot toward more comprehensive KYC compliance among its users:
Anyone else get a tax compliance email from Bitfinex? pic.twitter.com/cpeoyTaSCw
— Byron Murphy (@biffy_byro) May 18, 2018
To that end, the Bitfinex compliance email provided a series of links through which customers could self-certify their identities.
The move plays into the larger trend of de-anonymization that’s steadily creeping into the cryptoverse to the appeasement of mainstream powers. Anonymity and crypto trading may become totally antithetical in the coming months if the global trend continues.
What’s your take? Do you think Poloniex should’ve signaled their intentions earlier and given their users an earlier notice?
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