Bitmain, one of the biggest Bitcoin mining and the largest ASIC chip producer in the world, announced that the platform is introducing a Know-Your-Customer [KYC] policy. The announcement has led to the cryptocurrency community questioning the requirement of a KYC for a purchase.
The Bitcoin mining company has stated that full-KYC is required by all the customers in order to avail the mining equipment provided by the platform. The reason for the company to introduce the KYC is stated as regulatory compliance.
In addition, Bitmain has also sent across a mail regarding KYC to all the customers. The platform has asked them to complete the KYC procedure ‘as soon as possible’. Customers who fail to complete the process will either be blocked by the platform or restricted from making a purchase.
Customers are required to submit their personal information, which includes name, address, identification type and identification number. The information has to be submitted on the platform’s online portal. This is set to go live on 24th August 2018 at 00:00 UTC.
Bitmain adds that the information collected by the platform will not be shared with any “unauthorized third parties” without the permission of the customer. Although, they mention that the information will be shared if required by the government.
Furthermore, the Bitcoin mining company has also provided the ‘purchase limit structure for the authentication’. They are:
If the identification information not provided or the authentication of the KYC is in progress. The maximum purchase limit is:
- Domestic Website: ¥300,000
- English Website: $0
If the authentication of the KYC is completed and approved. The maximum purchase limit is:
- Domestic Website: Unlimited
- English Website: Unlimited
If the authentication is completed and disapproved. The maximum purchase limit is:
- Domestic Website: 0
- English Website: 0
The compulsory KYC has also triggered a part of the cryptocurrency community to speculate if the KYC is related to Bitmain’s upcoming IPO. Whereas, the others speculate that it is related to China’s harsh actions against cryptocurrency firms.
WhalePanda, a Twitterati said:
” I don’t know if this has got anything to do with the IPO or with the government but the timing for sure is interesting. This in combination with all the vouchers people have been receiving, it sounds like they’re giving incentives to customers to do full KYC to clean their books.”
Michael, another Twitterati said:
“Soon I’ll need to provide my eye scan and DNA to buy an old S9 mine”
Dominic Ratelle, a Navy Veteran said:
“Hummmm just got an email from bitmain…. so now manufacturers of asics are doing kyc/aml? Sonn we will have to buy from secondary market to keep our privacy…..”
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