Poloniex, the cryptocurrency exchange that recently spun off from its parent firm Circle, has introduced a new “level 1” account tier that has no KYC (know-your-customer) requirements.
The exchange is lifting restrictions that applied to unverified users in response to customer demand. New and current accounts will enjoy access to unlimited trading and deposits.
Over the next few months, the current accounts of unverified customers will be unfrozen and upgraded to Level 1 accounts, the platform announced in a tweet this week. These users will have access to unlimited spot trading and deposits, while withdrawals will be restricted to a daily maximum of $10,000.
Starting now, all new customers can create an account using only an email address and password and begin trading, Poloniex revealed in a blog post on the matter.
Sign up on Poloniex, Trade for free
The new account tier means that anyone who signs up for the exchange from now on will be able to start trading immediately and already existing accounts of unverified users will be gradually upgraded to Level 1.
“We know how frustrating your experience has been recently and we’re dedicated to improving that for you,” Poloniex emphasizes, addressing its long-time clients.
“We are striving to provide the highest level of support and security possible for customers and appreciate your patience,” the exchange adds, advising customers to activate two-factor authentication as well.
The level 1 account tier allows new users to withdraw up to $10,000 per day, using only a verified email address and password. The account also allows “unlimited” deposits and spot trading.
Poloniex said the move has been taken based on customer feedback. Binance also allows withdrawals of up to 2 bitcoins (currently worth ~$15,000) with no KYC. OKEx also had a similar feature, but it recently banned unverified users from withdrawing funds due to China’s crackdown on the crypto sector.
Traders with unverified accounts will enjoy some additional benefits. For example, they will be able to participate in competitions, take advantage of staking services and gain access to Trollbox, the platform’s forum for traders.
Level 1 users can also buy cryptocurrency with bank cards. The exchange currently supports dozens of digital coins including leading currencies such as bitcoin core (BTC), bitcoin cash (BCH), ethereum (ETH), and litecoin (LTC) as well as new cryptos like the Mimblewimble-based grin.
Poloniex’s move comes amid a global trend towards implementing stricter know-your-customer (KYC) and anti-money laundering (AML) rules in the crypto space which has been traditionally quite sensitive to privacy infringement.
Could Poloniex be going against Government Rules?
Governments around the world have been introducing more stringent regulations to comply with the crypto standards adopted by the Financial Action Task Force (FATF) and the provisions of the European Fifth Anti-Money Laundering Directive (AMLD5).
Poloniex further said that users of level 1 account can also participate in other services, such as staking. The exchange will also begin unfreezing and upgrading existing unverified accounts to level 1.
Poloniex currently doesn’t serve U.S. customers – a move it took when it spun out of Circle in October. Poloniex has also seen a rebound in its market share since the spin-out, hitting above 2% market share on certain days for the first time in several months. It remains to be seen whether the exchange can sustain the rebound.