Bitcoin

OKCoin: New KYC Policy Hints at Possible Withdrawal Reactivation Date

Antonio Madeira | Apr 10, 2017 | 13:00

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OKCoin announces KYC/AML policy changes and gives users “suggestions and guidelines to boost trading experience and account security. No date for withdrawals has been given.

OKCoin announces KYC/AML policy changes

Chinese exchange OKCoin released a statement today informing users about the updates on KYC/AML policies. Although no clear date for the reactivation of withdrawals has been presented, some are speculating that these may be reactivated on the 23rd of April, the date given by OKCoin with regards to the deactivation of old Bitcoin deposit addresses.

The statement contains information regarding new KYC/AML policies as well as “suggestions and guidelines” that are meant to “boost your trading experience and account security.”

The latest statement by OKCoin, along with the emails users received from Huobi, indicates that Chinese exchanges may be gearing up to activate cryptocurrency withdrawals once more. However, both the statement by OKCoin and the emails by Huobi make note of the new KYC policy which will require users to confirm their identity via video verification once a certain limit of deposits is reached, something that can throw off users that want to preserve a certain amount of privacy.

“Suggestions and guidelines”

The statement issued by OKCoin makes no allusion to an estimated timeframe for the withdrawals to be reactivated, focusing instead on the new KYC procedures and improved account security.

In its statement, OKCoin advises users to change passwords and 2-FA keys regularly and to register their phone number, stating that they will periodically reach out and remind users to change their passwords. In order to boost efficiency and security, OKCoin will now use multi-signature addresses, meaning that old BTC and LTC wallet addresses will no longer work after April 23rd.

OKCoin also advises customers that have incorrect account info to contact support and provide the real information, giving users a one-time chance of providing their real information and documents in case they had previously presented incorrect or outdated information. Users with fake or incorrect info may lose access to their account.

Video Verification

OKCoin failed to provide a number with regards to video verification, stating that support may contact users for video verification once deposits reach “a certain amount”. The (translated) statement reads:

Once your lifetime deposit reaches a certain amount, our support staff may contact you and perform enhanced due diligence. Please be prepared with relevant documents and information. Level 2 verification will require a copy of your passport, a copy of your ID/driving licence, and additionally, a copy of your proof of residential address issued within 2 months when needed. Video verification will require a device that has video recording function and access to the internet. You will be reqired to show your valid legal documents in front of the camera.

Last month, Huobi sent an email to users informing them about the upcoming video verifications. The email reads:

In accordance to KYC / AML regulations and account monitoring procedures Huobi is subject to, we will initiate video verification at 17:00 Mar 28th (GMT +8), please cooperate to complete video verification as requested then, or it may affect your withdrawals.

Although only OKCoin and Huobi have mentioned the introduction of video confirmation, it seems that video confirmation will be universally required within the country in order to conform with the KYC/AML procedures imposed by the People’s Bank of China (PoBC).

Are Withdrawals Coming?

This is probably the question on everyone’s mind. Although some have speculated that OKCoin will resume withdrawals on the 23rd of April, this is merely the date on which old Bitcoin and Litecoin deposit addresses will be deactivated to give way to multi-signature addresses.

The halt on BTC and LTC withdrawals has been going on for more than two months now. At the time, the exchanges estimated the moratorium to last for one month before announcing that this time frame would be extended indefinitely.

Despite no official date being given by any of the big three exchanges in the country, users are expecting withdrawals to be reactivated soon given the recent statements and emails regarding KYC/AML procedures issued by OKCoin and Huobi.

Are cryptocurrency withdrawals coming back to China soon? Will video verification be the last measure imposed by the PBoC? Let us know what you think.

Images courtesy of OKCoin, AdobeStock