CryptoBridge Introduces Compulsory User Verification
Barely 7 months after making identity verification a compulsory step for its United States users, cryptocurrency exchange, CryptoBridge has come out to announce that user verification will now be extended to all its users. The exchange in an official post published on October 1, said:
While we still strive to present new challenges for international financial regulation, we are facing the 5th EU Anti-Money Laundering Directive (AMLD5) and will adjust our gateway services to pave the way for CryptoBridge moving forward.
What this means is that all new and existing users on the exchange will now be required to submit user verification before they can deposit or withdraw. According to CryptoBridge, verification will help protect customers and particularly the exchange from being held liable for any money laundering activities. AMLD5 will create a legal status for cryptocurrencies whilst fostering their usability within legitimate financial networks.
CryptoBridge has also added that it will not have access to any user’s information other than a UUID associated with a successful KYC verification. The exchange will be working with Fractal.ID to collect and store user data in line with the General Data Protection Regulation (GDPR) compliance measures. A user’s data will only be made available if there is a court order mandating its release.
The crypto community has not taken the sudden news likely on Twitter. One Twitter user @andro1984, responding to the new restriction stated:
Do you think this is normal? You should give me a couple of months ' notice. The Russian community will treat you very negatively.
Another user said:
You redirecting to some doggy company for KYC. They have [a] statement in their terms & conditions "We may use processors that process your data in countries outside of the EU that do not ensure an adequate data protection level comparable to the EU" this fractal looks like [a] scam.