One of the longest-running cryptocurrency-only exchanges is taking steps to bring its customer registration processes in line with the wider industry.
Announced on Dec. 27, U.S.-based exchange service Poloniex revealed it will soon disable all legacy accounts, that is unless these users complete the same verification process as its newer account users who must complete know-your-customer (KYC) due diligence. The exchange said a deadline for identification verification will be released within the first quarter of 2018.
Stepping back, the requirement is perhaps the latest move by the exchange to meet regulatory compliance and better ensure its services aren't used as a conduct for criminal activities such as money laundering. Those not able to meet the requirement deadline, Poloniex said, will have their accounts disabled, meaning they will no longer be able to deposit, trade, lend or open orders.
Similarly, a margin position will be offered an eight-week grace period before closure.
It appears that the only feature to remain functional for legacy users will be withdrawal, which is subject to a maximum limit of $2,000. Based in the U.S. and incorporated in the State of Delaware, Poloniex has seen $860 million in trading volume within the last 24 hours, according to data site CoinMarketCap.
The exchange did not disclose how many legacy accounts are to be affected by the new rule.
Finger print image via CoinDesk's archive.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.