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

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

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

As we mature as a business, we’ve built our controls, found and integrated more signals, Bankman-Fried said. He also highlighted the addition of a new feature on FTX that confirms the jurisdiction of users 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 some features of the site, including futures.

Sharing insights into FTX’s operations in the United States, the entrepreneur highlighted the company’s continued efforts to research more tools to confirm identity, while hopefully minimizing hassle for users. . Bankman-Fried hopes this effort will help the company experience smoother operations in U.S. jurisdictions.

Currently, FTX aims to outperform competing crypto exchanges such as Binance and Coinbase. As Cointelegraph reported, the CEO previously said it was not at all ruled out that he would acquire Goldman Sachs and CME if he could outperform all crypto firms to become the biggest exchange.

Complementing the announcement about the KYC-related update, 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 user activities to activities related to money laundering and theft. In doing so, the crypto exchange will continue to implement two-factor authentication (2FA) 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 FTXs to apply for licenses in many jurisdictions. In doing so, the CEO of FTX claimed to invest five hours a day in 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 KYC and anti-money laundering requirements. money, specific to each jurisdiction they serve.

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