Is Poloniex’s Decision To Tighten KYC Restrictions a Smart Move?

Poloniex is a cryptocurrency exchange owned by Circle which is backed by Goldman Sachs has been notifying its legacy users that they have verification rules. The restrictions which were implemented recently were initially expected to be optional for legacy clients but according to sources the verification process is mandatory.

Poloniex recently explained to their users that they have 14 days to comply with the new regulations. The new rules will require users to provide a government issued ID or passport, and a verification photo. The recent update also further adds that users will not be able to use their accounts until they complete the profile verification process.

Customers have thus been advised to take the necessary actions as soon as possible so that they can continue using the services offered by the platform. The change in structure was not received well by some of the users that have stated the exchange failed to live up to some of the promises it made in December last year.

One Reddit user pointed out that Poloniex had announced that it would reveal the date of the deadline within the first quarter of 2018, but it failed to do so. It had also announced that proper notice would be given before the implementation of the requirements and that withdrawals would not be disabled. However, the company went ahead and broke those promises.

Poloniex plans to raise the daily withdrawal limits of verified users to $25,000 per day. Many investors have been disappointed by Poloniex’s lack of warning, and its decision to implement such harsh restrictions on its platform. There have also been reports that not all legacy users have received the notification. Another Reddit user complained that Poloniex has failed to provide users with a chance to move their funds from their accounts which are already frozen until they follow the new verification procedures.

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