The new policy came into force on Wednesday, December 11th, with customers now being required to submit identity information and proof of address in order to access the exchange.
CEX did have a KYC policy previously, but it was not obligatory. Customers could voluntarily undergo KYC requirements to unlock certain account features like higher withdrawal limits and extending card payment limits.
The EU’s fifth Anti-Money Laundering (AML) Directive was announced in July of this year, and while the UK is still officially in the EU, companies like CEX have to comply with the legislation.
Mandatory verification has come into effect on https://t.co/OPoleqNuJO. If you haven’t verified your account yet, do so shortly to get access to all payment options on https://t.co/OPoleqNuJO and increase your deposit and withdrawal limits. Details at https://t.co/ZhX2dplCYE pic.twitter.com/jSkakGz6ev
— CEX.IO (@cex_io) December 11, 2018
CEX Regulatory Affairs Counsel Serhii Mokhniev said: “We have always understood the importance of dealing with virtual currency within a legal framework, so mandatory verification for customers who transact in fiat currency was introduced long before the fifth Anti-Money Laundering Directive was adopted in the EU.”
In December 2017, the UK announced that they are planning a crackdown on money laundering and tax evasion through the use of cryptocurrencies and digital assets.
In October, UK Economic Secretary to the Treasury Stephen Barclay said: “The UK government is currently negotiating amendments to the Anti-Money Laundering Directive that will bring virtual currency exchange platforms and custodian wallet providers into anti-money laundering and counter-terrorist financing regulation, which will result in these firms’ activities being overseen by national competent authorities for these areas.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.