KYC tools can minimize hassle for US crypto market, FTX CEO says

FTX will now use phone numbers to confirm user’s jurisdiction and names in addition to testing new KYC tools.

Ongoing regulatory scrutiny has forced many crypto businesses across the globe to close up shop. 

Amid this crackdown, the CEO of prominent crypto exchange FTX, Sam Bankman-Fried, has been vocal about his continued efforts to adapt to the changing regulations around running crypto businesses, announcing FTX’s efforts toward finding systems for streamlining its Know Your Customer (KYC) operations. 

“As we mature as a company, we’ve been building out our checks, finding and incorporating more signals,” Bankman-Fried stated. 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 submitted names in KYC1, in order to further verify them. When this doesn’t work or there isn’t data, we’ll require KYC2 to access some features of the site, including futures.”

Sharing insights within FTX’s US operations, the entrepreneur stressed the company’s continued efforts in “searching for more tools to confirm identity, hopefully while minimizing the hassle for users.” Bankman-Fried hopes this effort will help the company experience “smoother” operations within US jurisdictions. 

Currently, FTX aims to outperform rival crypto exchanges such as Binance and Coinbase. As reported by Cointelegraph, the CEO has previously said that acquiring Goldman Sachs and CME “is not out of the question at all” if it can surpass all crypto businesses to become the biggest exchange.

Complementing the announcement on KYC related update, Bankman-Fried cited investors’ funds and safety as a priority. He also assured investors there would be no restrictions on withdrawals unless the exchange can 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 (2FA) and similar methods to help prevent theft.

Related: Regulatory clarity for crypto would take 3 to 5 years, FTX CEO says

Bankman-Fried recently discussed the immediate need for clarity in crypto regulation, supporting FTX’s drive to apply for licenses across numerous jurisdictions. In doing so, the FTX CEO claimed to invest “five hours a day” on regulation and licensing related activities.

The CEO said that he expects governments to have a clearer stance on crypto regulations in the next three to five years and intends to comply with KYC and Anti-Money Laundering requirements, unique to each jurisdiction they serve.