CryptoBridge enforces zero notice KYC on all users
CryptoBridge released a statement that it will require all users to undergo a KYC process to Trade, Deposit and Withdraw from the 1st of October.
While we still strive to present new challenges for international financial regulation, we are facing the 5th EU Anti-Money Laundering Directive (AMLD5) and will adjust our gateway services to pave the way for CryptoBridge moving forward.CryptoBridge blog
The process involves using an external service https://fractal.id/ to upload Details, Documents, Tax returns, Wage slip and Bank statements and has caused a stir among the exchanges users and community.
One of the main gripes is that no prior notice was given to users to allow them to withdraw funds. Users have taken to Twitter to express their anger, with some users tweeting they will abandon any funds on CryptoBridge in order to avoid any mandatory KYC. Other users have stated that a mandatory KYC process means CryptoBridge no longer qualifies as a Decentralised Exchange..
When asked why CryptoBridge did not give users a grace period before enforcing KYC they responded:
Regulation is in place and it needs to be followed. It’s as simple as that. Our lawyers strongly recommend not to have a grace period due to the potential facilitating of money laundering and terrorism financing. Anyone who submits documentation will get their funds, they have a legal right to and we do abide to all EU and US laws. It’s not like we enjoy doing it. Personally I hate the fact that I must defend it here, so I will stop that now.CryptoBridge from their Discord
The decision for CryptoBridge to implement mandatory KYC, alongside the poor communication of this to its users and community could have an effect on the trading volume, which currently stands a $200k per day on the day of this announcement.
The impact is likely to be felt immediately as KYC registration is necessary for anyone trading, depositing or withdrawing on the CryptoBridge platform.