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One of the most prominent and widely used cryptocurrency exchanges in the industry is Bybit. This trading platform offers impressive features that keep evolving with time.
The use of advanced security protocols makes Bybit one of the safest trading platforms in the industry. The security it offers has been enhanced further, thanks to the implementation of KYC (know your customer) verification.
This verification process was introduced by Bybit in mid-2021 and has taken the user experience to a new level. KYC not only strengthens the security offered to the traders but benefits them as well.
Therefore, users should first know the details of Bybit KYC mentioned below before starting crypto trading.
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What is Bybit KYC?
The term KYC stands for “Know Your Customer”. This is a set of procedures where the crypto exchanges verify the identity of a user. The customers of an exchange are required to provide the required identification documents.
Implementing KYC verification goes against what the blockchain platforms stand for, which is the concept of decentralization. This verification process benefits the users of the exchange by keeping hackers and fraudsters in check. Nevertheless, it compromises the possibility for users to buy or trade crypto while remaining anonymous.
What is the Standard KYC Process?
The basic process of a KYC verification is to cross-reference the identity of a customer with important documents such as:
- Identity documents (issued by the government)
- Facial recognition
In some cases, this process is a one-time thing, while some platforms may require constant confirmation of a user’s identity to mitigate any risks of cyber threats or fraud.
Once the required documents are provided by the users, they are verified by using the OCR technology. The next step is to carry out anti-money laundering (AML) screening to identify any high-risk individuals. The last step is the ongoing monitoring of financial transactions carried out by the user in question, to ensure they are not involved in money laundering or any other fraud.
Why is KYC Verification Necessary in Crypto?
The KYC rules have been implemented by traditional financial institutions for quite some time. It has been recently introduced in the crypto space for major reasons. Even though anonymous trading is not possible with KYC, it does limit frauds such as money laundering and tracing illegal transactions.
This verification also enables exchanges to restore hacked accounts, prevent cyber-attacks and keep the assets of the customers safe.
KYC Verification on Bybit
KYC verification on the Bybit exchange also increases the withdrawal limit for the users.
Traders using the Bybit exchange can only participate in Bybit Earn projects such as Launchpool and Launchpad if they complete the verification.
The process usually takes up to 48 hours and is conducted on two levels (Individual and Business), both of which are discussed in detail below.
Also, read our detailed Bybit review.
The users of the Bybit exchange can withdraw up to 2 BTC in 24 hours if they do not complete the KYC verification. However, this limit can be increased up to 50 BTC and 100 BTC if the users complete Level 1 and Level 2 verifications, respectively.
The documents required for Level 1 KYC verification are:
- Government-issued ID or passport
- Facial recognition screening
The documents required for Level 2 verification several proofs of residential address, including:
- Bank statement
- Government-issued residential proof
- Utility bill
The requirement for business KYC verification is a bit stricter and requires the users to provide several documents. The requirement to complete Level 2 verification for a withdrawal limit to increase up to 100 BTC applies here as well.
The documents required for Level 1 verification include the following:
- Articles, constitution or memorandum of association
- Certificate of incorporation
- Information of one director (within 3 months), if different from the UBO
- Proof of residency of the Ultimate Beneficial Owner (UBO) owning 25% or more interest in the company (within 3 months)
- Register of directors
- Register of members
Bybit is an excellent exchange to trade crypto. However, before you sign up for it, you need to know details such as the implementation of KYC. None of the crypto exchanges are completely risk-free but the use of security protocols such as KYC can mitigate the risks to a great extent.
Therefore, if you are interested in signing up with Bybit to trade crypto, you should know the above-mentioned information first.
To know more about Bybit, you can also see our full tutorial below.