Crypto trading platform Poloniex now allows users to possess a level account on the exchange without the need for going through KYC procedures. These no KYC exchange accounts have certain restrictions on their usage.
No KYC exchange accounts
In the last few years regulation regarding the crypto industry has been improving and hence many exchanges have updated their rules into harsher policies. Most exchanges are trying to monitor their users and require identification while setting up an account. However, Poloniex has taken a step in the opposite direction by introducing accounts that do not need Know-Your-Customer (KYC) verification.
Poloniex made the news public through a blog post announcing the launch of level one accounts on their trading platform. These no KYC exchange accounts enable users to own an exchange address without the need for going through identification procedures. As per the announcement, the service was requested by a lot of people using the platform.
People only need to set up an email address and a password to create such an account. The trading functions of these accounts are the same as other accounts that have gone through KYC procedures. However, these no KYC exchange accounts can only withdraw 10,000 dollars each day. To withdraw larger sums the users need to go through KYC and sign up for a higher level account. This restriction is placed to suppress illegal activity that may be done through these anonymous accounts.
Crypto assets are known for the anonymity they provide and hence are used by people that want their financial activity t remain private. With regulations demanding users to go through KYC before trading, their financial activity on a blockchain no longer remained anonymous. This caused a lot of users to use a decentralized exchange or to not use one at all. With Poloniex introducing no KYC exchange accounts, it would likely attract a number of people to its userbase.