Poloniex is a cryptocurrency-only exchange and is, in fact, one of the longest-running crypto exchanges there is. Recently Poloniex made an announcement that has some users grumbling about their decision to start trading on this particular crypto exchange.

On December 27, Poloniex announced that it has upgraded its customer identification and verification systems. This means that any and all legacy accounts (accounts made prior to this upgrade) will need to go through this upgraded verification process in order to continue having full access to Poloniex’s services. Legacy accounts that do not get verified by the soon to be released deadline will be disabled.

This upgraded verification process includes a know-your-customer (KYC) verification check, a KYC being a process that enables the business, in this case, Poloniex, to identify and verify the identity of its clients, in this case, account holders and users of the exchange. Having this type of verification check setup, and ensuring that all users must go through it, help Poloniex to meet regulatory compliance and to make sure that its services aren’t being used for criminal activities (for example, money laundering).

The accounts that do not go through this verification process, according to Poloniex, will no longer be able to deposit, trade, lend, or open doors. Any open orders on a legacy account will be closed. Loans will have the auto-renew turned off. Deposit addresses will be revoked. In fact, the only service that will remain open for legacy accounts will be the ability to withdraw, and even this is going to be limited. Legacy accounts will be restricted to a $2,000 withdrawal limit per day; on the other hand, those accounts that are verified will continue to have the regular limit of $25,000 per day.

Users may check the status of their accounts on the Poloniex exchange. Legacy and verified statuses will look like this:

Image source – poloniex.com

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