Poloniex, a cryptocurrency exchange, announced a new account tier, dubbed Level 1, which allows up to $10,000 in daily withdrawals without requiring full ‘Know Your Client’ (KYC) onboarding.
On December 19, it has been reported that the new account tier has been created in reaction to user feedback.
The post reads:
“We’ve heard your feedback time and time again about wanting to use Poloniex without giving up your identity. We’ve wanted to make this a reality for a while now and are sorry it has taken us longer than we’d like.”
However, from now on, new users are able to sign up on Poloniex without KYC and access unlimited deposits, spot trading and withdraw up to $10,000 per day. To set up the accounts, users reportedly only need to provide an email address and chooses a password. The tier also grants access to the platform’s competitions, staking service and chat.
The exchange also suggests taking extra steps to ensure the account’s security:
“As with any account, we highly recommend setting up 2FA as soon as possible to provide an extra layer of security.”
Likewise, the data reported on the official website shows that Level 1 accounts do not have access to margin trading, lending, fiat currency wires.
Furthermore, they have limited 2FA recovery, manual password resets, manual fund transfers and fund recovery functionality.
It has been analyzed that Poloniex is currently upgrading customer accounts and unfreezing existing unverified accounts. The process will still take a few months to reach the users.
Tristan D’Agosta, the CEO of Poloniex, did not say anything about the number of accounts and the number of funds to be unfrozen yet.
Interestingly, those regulations seem to contrast with the current trend toward regulation prohibiting custodial cryptocurrency services to anonymous users.
As it has been reported, the Fifth Anti-Money Laundering Directive, which will be adopted in the European Union by January 10, 2020, requires that crypto exchanges based out of the EU only accept users that undergo KYC.
As a consequence of increasingly strict regulation, Bottle Pay service, which allowed users to send Bitcoin (BTC) through social media accounts, decided to shut down.
Thus, later this month, ChopCoin, a crypto gaming platform, and Simplecoin, a mining pool, also announced their shutdown because of KYC requirements.
Source: support.poloniex.com | cointelegraph.com