Poloniex Allows Up to $10,000 Daily Withdrawals for KYC-Less Accounts

Published at: Dec. 23, 2019

Cryptocurrency exchange Poloniex announced a new account tier — dubbed Level 1 — allowing for up to $10,000 in daily withdrawals without requiring full Know Your Client (KYC) onboarding.

According to the announcement published by the exchange on Dec. 19, the new account tier has been created in reaction to user feedback. The post reads:

“We’ve heard your feedback time and time again about wanting to use Poloniex without giving up your identity. We’ve wanted to make this a reality for a while now and are sorry it has taken us longer than we’d like.”

Anonymous trading

From now on, new users are able to sign up on Poloniex without KYC and access unlimited deposits, spot trading and withdraw up to $10,000 per day. To set up the accounts, users reportedly only need to provide an email address and choose a password. The tier also grants access to the platform’s competitions, staking service and chat. The exchange also suggests taking extra steps to ensure the account’s security:

“As with any account, we highly recommend setting up 2FA as soon as possible to provide an extra layer of security.”

Data reported on the official website shows that level 1 accounts do not have access to margin trading, lending, fiat currency wires. Furthermore, they have limited 2FA recovery, manual password resets, manual fund transfers and fund recovery functionality.

Poloniex is currently upgrading customer accounts and unfreezing existing unverified accounts. Still, the process will take a few months to reach the users. As of press time, Poloniex CEO Tristan D'Agosta did not answer to Cointelegraph’s inquiry about the number of accounts and quantity of funds to be unfrozen. This article will be updated upon receipt of that information.

Interestingly, those regulations seem to contrast with the current trend toward regulation prohibiting custodial cryptocurrency services to anonymous users. As Cointelegraph recently reported, the Fifth Anti-Money Laundering Directive, which will be adopted in the European Union by Jan. 10, requires that crypto exchanges based out of the EU only accept users that undergo KYC.

As a consequence of increasingly strict regulation, Bottle Pay service, which allowed users to send Bitcoin (BTC) via social media accounts, decided to shut down. Later this month, crypto gaming platform ChopCoin and mining pool Simplecoin also announced their shutdown because of KYC requirements.

Tags
Regulation
Bitcoin Regulation
Cryptocurrency Exchange
Cryptocurrencies
Privacy
Kyc
Poloniex
Related Posts
DeFi regulation must not kill the values behind decentralization
Cryptocurrency brought us peer-to-peer payments that continue to elevate participation in the global economy for millions of people without access to traditional banking services. The rise of decentralized finance (DeFi) promises to further expand access to financial services, including savings, lending, derivatives, asset management and insurance products. This innovation, which empowers financial inclusion, should be allowed to flourish in a regulated environment where individuals and institutions are protected and suspicious activity is identified and reported. But how do you regulate these decentralized products without completely removing the core attributes of financial inclusion and decentralization? Know Your Customer (KYC) procedures are …
Technology / Aug. 22, 2021
South Korea’s crypto regulation is now expanding to foreign businesses
Due to their anonymity or pseudonymity, digital assets are perceived as entailing the risks of money laundering and financing terrorism. In October 2018, the Financial Action Task Force (FATF) adopted changes to its recommendations on financial activities involving digital assets, adding the definitions “virtual asset” (VA) and “virtual asset service provider” (VASP). Since then, the FATF has adopted a risk-based approach to VA activities or operations and VASPs. This new approach includes the supervision of VASPs to ensure compliance in the areas of licensing and registration and preventive measures such as customer due diligence, transaction reporting and record-keeping. It also …
Regulation / Aug. 13, 2021
Japanese Liquid Exchange to Delist Zcash to Get Licensed in Singapore
Japanese cryptocurrency exchange Liquid is reportedly delisting privacy-focused coin Zcash (ZEC) in order to apply for a license to operate in Singapore. The Electric Coin Company, which develops the Zcash cryptocurrency, announced the news in a July 22 tweet. They elaborated that Zcash will be delisted from Liquid alongside 28 other tokens. Liquid, which recently ranked #6 among top tier exchanges on CryptoCompare, has not yet posted an official statement on whether they plan to delist Zcash. Cointelegraph reached out to the exchange with more queries and will update the article pending any new information. Zcash is entirely compatible with …
Regulation / July 23, 2020
Privacy coins are surging. Will regulatory pressure stall their stellar run?
Recent weeks saw a massive surge of the so-called privacy coins’ prices — namely Monero (XMR), Dash (DASH), Zcash (ZEC) and Haven Protocol (XHV). As many other cryptocurrencies and the industry at large faced immense regulatory pressure amid the war in Ukraine, one narrative that began taking hold in the crypto space was the potential of such privacy-enhancing assets to provide investors a greater level of financial anonymity. But, can privacy coins deliver on Bitcoin’s (BTC) original promise? A good month for privacy-focused assets Over the past month, Monero has almost doubled its tally. With some minor oscillations, it rose …
Regulation / March 27, 2022
Coinbase is fighting back as the SEC closes in on Tornado Cash
On Sept. 8, Coinbase announced it was bankrolling a lawsuit against the United States Treasury Department. The cryptocurrency exchange is funding a lawsuit brought by six people that challenges the sanctions on Tornado Cash. And on Sept. 9, Securities and Exchange Commission (SEC) Chair Gary Gensler announced he was working hard with Congress to create legislation to increase cryptocurrency regulations. But these two stories are not mutually exclusive. And the sequence of events proves that governments are purely reactive rather than proactive when it comes to decentralized finance (DeFi). Tornado Cash was sanctioned by the Office of Foreign Assets Control …
Regulation / Sept. 17, 2022