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KYC Terms

What is KYC?

Know Your Customer (KYC) is a process frequently used by banks, financial institutions, or cryptocurrency exchanges such as ChainBitX to verify and collect customer identity and information.

The objective is to promptly prevent fraud, deceit, or other illegal activities and regulatory violations.

At present, in some countries, conducting KYC is an essential activity for identifying and collecting customer and user information, and the security of this data must comply with legal requirements.

What are the risks of using a non-KYC exchange compared to one that requires KYC?

Zero-KYC cryptocurrency exchanges do not require identity verification, prioritizing user anonymity and privacy. These exchanges can operate in three forms:

  • Non-KYC custodial: A centralized exchange holds users' funds and private keys.

  • Non-custodial, non-KYC: Users retain control of their private keys and assets.

  • Hybrid model: Offers both custodial and self-custody options for different asset types.

These exchanges appeal to users seeking security, anonymity, or residing in regions with limited financial regulations that do not require strict KYC compliance.

Due to regulations such as AML, MiCA, and stricter tax reporting requirements in the EU and the US, the cryptocurrency market is no longer as unrestricted as before. Non-KYC exchanges face higher risks because:

  • Risk of scams and fraud: The lack of identity verification provides opportunities for fraudsters, increasing the likelihood of exit scams.

  • Strict regulatory oversight: MiCA and other regulations are shutting down non-compliant exchanges.

  • Security vulnerabilities: The absence of security measures makes non-KYC exchanges more susceptible to hacking.

  • Lack of transparency and legal protection: Users have minimal protection and may find it difficult to seek compensation in case of issues.

The role of KYC in the cryptocurrency market

From the above information, the key roles of KYC can be summarized as follows:

  • Preventing money laundering and terrorist financing.

  • Ensuring legal compliance in multiple countries and regions.

  • Protecting users from scams and fraud.

  • Enhancing transparency and accountability.

  • Establishing trust with financial institutions and investors.

Overall, KYC is a crucial factor in promoting the sustainable development of the cryptocurrency industry, legitimizing activities, and building trust among users.

ChainbitX's KYC Process

At ChainbitX, identity verification is required to trade cryptocurrencies, and KYC is divided into three levels: Intermediate, Advanced, and Professional Advanced.

Users must provide:

  • Personal information

  • Identification documents (ID card, driver's license, passport, etc.)

  • Facial recognition

  • Proof of address

To increase transaction limits, users must declare their source of funds and verify their non-involvement in political activities. ChainbitX enforces one of the most stringent KYC policies to protect users and the ecosystem.

For more details, refer to: Compliance Rules: ChainbitX’s KYC

ChainbitX Registration Instructions

To register a ChainbitX account on a mobile device:

Step 1: Download the ChainbitX app from CH Play or the App Store. Step 2: Open the app, tap "Register," select the account type (Individual/Corporate Entity), and choose "Register with Email or Phone." Step 3: Enter an email/phone number and create a password (at least 8 characters, including 1 uppercase letter and 1 number). Recommended ID = 11885538 Step 4: Agree to the Terms of Service and click "Create Personal Account." Step 5: Enter the verification code received via email/phone to complete the registration.

ChainbitX KYC Account Guide from A to Z

After registering or logging into a ChainbitX account, users must complete KYC verification to access trading products such as ChainbitX Contracts and ChainbitX Launchpool. BTA provides a detailed guide on the ChainbitX KYC process:

Step 1: Log into the ChainbitX app, tap "Verify Now" on the homepage, or if no notification appears, go to "Profile" and select "Action Required." Step 2: Select your country of residence > Tap Continue. Step 3: Enter personal information (must match the identification document). Step 4: Upload a photo of the identification document (ID card or passport). Step 5: Follow the instructions to center your face and move for facial recognition. Step 6: Wait for ChainbitX to verify and receive a notification email.

Note: Users can attempt verification up to 10 times within 24 hours. If rejected, wait 24 hours before retrying. Do not exit the application during the verification process.

Conclusion

KYC has become an indispensable part of the cryptocurrency market, especially for exchanges like ChainbitX. Where cryptocurrency regulations are not yet well established, KYC plays a vital role in protecting users and ensuring secure cryptocurrency transactions.

As a leading global exchange, ChainbitX remains committed to supporting its customers and users in contributing to the sustainable and secure development of the cryptocurrency market.

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