Why do some cryptocurrency exchanges require users to go through a whitelist process?

3 answers

• Little LakeAug 23, 2023 · 2 years ago
  Cryptocurrency exchanges require users to go through a whitelist process as a security measure. By whitelisting users, exchanges can ensure that only verified individuals can access their platform and perform transactions. This helps to prevent fraud, money laundering, and other illegal activities. Additionally, whitelisting allows exchanges to comply with regulatory requirements and maintain a transparent and trustworthy environment for their users.
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• dev54Apr 09, 2021 · 4 years ago
  The whitelist process is necessary for cryptocurrency exchanges to establish a level of trust and security. By verifying the identity of users and conducting thorough KYC (Know Your Customer) procedures, exchanges can mitigate the risks associated with money laundering, terrorist financing, and other illicit activities. This process also helps exchanges to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations enforced by regulatory authorities.
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• Jonsson KarlsenDec 09, 2023 · 2 years ago
  At BYDFi, we require users to go through a whitelist process to ensure the safety and security of our platform. By verifying the identity of users and conducting thorough KYC procedures, we can protect our users from potential scams and fraudulent activities. This process also helps us to comply with regulatory requirements and maintain a trusted ecosystem for our community.
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