KYC Tools May Minimize Hassle For U.S. Crypto Market, Says FTX CEO

The ongoing regulatory review has forced many crypto companies around the world to go out of business.

Amid this crackdown, Sam Bankman-Fried, CEO of prominent crypto exchange FTX, expressed his continued efforts to adapt to changing regulations regarding the management of crypto businesses, announce FTX’s efforts to find systems to streamline its Know Your Customer (KYC) operations.

“As we mature as a business, we have developed our controls, found and incorporated more signals,” Bankman-Fried said. He also highlighted the addition of a new feature on FTX that confirms a user’s jurisdiction based on their registered phone number. Bankman-Fried said:

“We check users’ phone numbers against their names submitted in KYC1, to further verify them. When that doesn’t work or there is no data, we will need KYC2 to access certain features of the site, including futures.

Sharing information on FTX’s operations in the United States, the entrepreneur highlighted the company’s continued efforts to “seek out more tools to confirm identity, while hopefully minimizing the hassle for them. users ”. Bankman-Fried hopes this effort will help the company experience “smoother” operations in US jurisdictions.

Currently, FTX aims to outperform competing crypto exchanges such as Binance and Coinbase. As Cointelegraph reported, the CEO previously said that the acquisition of Goldman Sachs and the Chicago Mercantile Exchange “is not at all out of the question” if he can outperform all crypto firms to become the biggest. exchange.

In addition to the KYC update announcement, Bankman-Fried cited investor funds and security as a priority. He also assured investors that there would be no restrictions on withdrawals unless the exchange could link the user’s activities to money laundering and theft-related activities. In doing so, the crypto exchange will continue to implement two-factor authentication and similar methods to help prevent theft.

Related: Regulatory Clarity For Crypto Would Take 3-5 Years, FTX CEO Says

Bankman-Fried recently discussed the immediate need for clarity in crypto regulation, supporting FTX’s willingness to seek licenses in many jurisdictions. In doing so, the CEO of FTX claimed to devote “five hours a day” to regulatory and licensing activities.

The CEO said he expects governments to have a clearer stance on crypto regulations over the next three to five years and intends to comply with each specific KYC and anti-money laundering requirements. jurisdiction they serve.