Why is KYC mandatory in CEX?

[AntonietteK]

It seems to be a new trend that exchanges are applying mandatory KYC. This includes top-tier exchanges like Bitget. Does this mean that this is the only way to help achieve the targeted level of security?

[Maryann]

Basically, all exchanges are going KYC. I don't know if is just me, but Biometric authentication is safer and easier to implement on

[Abizee27]

37 minutes ago, Maryann said:

Basically, all exchanges are going KYC. I don't know if is just me, but Biometric authentication is safer and easier to implement on

From my point of view, Bitget and similar exchanges are all exploring risk-based authentication, which involves adjusting the level of verification required from users based on their activity and risk profile. This approach has the potential to enhance user-friendliness.

[TradingHubz]

3 hours ago, AntonietteK said:

It seems to be a new trend that exchanges are applying mandatory KYC. This includes top-tier exchanges like Bitget. Does this mean that this is the only way to help achieve the targeted level of security?

An alternative method for identity verification on platforms like Bitget involves leveraging blockchain technology. Certain projects are currently exploring the concept of self-sovereign identities, which grants users complete control over their data and enables them to selectively share it.

Edited September 5, 2023 by TradingHubz