STEX to Enforce KYC Procedures by January 2020
Cryptocurrency exchange, STEX has sent a notification to customers informing them of the need to verify their profiles before January 1, 2020. The STEX team confirming the news stated that customers can still use the platform without verification until December 31, 2019.
The move to enforce Anti-Money Laundering (AML) and Know Your Customer (KYC) is in line with the AMLD 5 which attempts to monitor and prevent the use of financial systems for terrorist financing and money laundering. Addressing exchanges and cryptocurrencies, the amendment states:
The anonymity of virtual currencies allows their potential misuse for criminal purposes… To combat the risks related to the anonymity, national Financial Intelligence Units (FIUs) should be able to obtain information allowing them to associate virtual currency addresses to the identity of the owner of virtual currency.
In comparison with how CryptoBridge announced its mandatory KYC procedure, STEX has given its customers ample time to either verify their profile or withdraw their funds. CryptoBridge had suddenly announced earlier this month that all its users were required to verify their identities to continue using its service.