Why do some digital currency exchanges require a phone number for verification?

6 answers

• Bui HowardJul 16, 2024 · a year ago
  Some digital currency exchanges require a phone number for verification as an additional security measure. By linking a phone number to an account, exchanges can ensure that only the account owner can access and make changes to the account. This helps prevent unauthorized access and protects users' funds and personal information.
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• Russell HauserAug 17, 2024 · a year ago
  Requiring a phone number for verification also helps exchanges comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. These regulations aim to prevent fraud, money laundering, and other illegal activities by verifying the identity of users. By collecting phone numbers, exchanges can have an additional data point to verify the identity of their users.
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• Rocha MikkelsenMar 29, 2021 · 4 years ago
  At BYDFi, we require a phone number for verification to ensure the security of our users' accounts. By verifying a phone number, we can add an extra layer of protection to prevent unauthorized access and keep our users' funds safe. It also helps us comply with regulatory requirements and maintain a secure trading environment.
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• MockTurtleAug 20, 2021 · 4 years ago
  Some digital currency exchanges may ask for a phone number to provide additional account recovery options. In case a user forgets their password or loses access to their account, having a verified phone number can help them regain access more easily. It's a way for exchanges to offer a convenient and secure account recovery process.
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• Mcbride MeierSep 08, 2023 · 2 years ago
  Requiring a phone number for verification can also help prevent the creation of multiple accounts by the same individual. By linking a phone number to an account, exchanges can limit the number of accounts a user can create, reducing the risk of fraud and abuse.
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• Aron SamsomOct 05, 2021 · 4 years ago
  While some users may find it inconvenient to provide a phone number for verification, it is an industry-standard practice that prioritizes security and regulatory compliance. Exchanges take the protection of users' funds and personal information seriously, and phone number verification is one of the measures taken to ensure a safe trading environment.
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