Poloniex has introduced a new type of account that allows users to withdraw as much as $10,000 a day without completing know-your-customer (“KYC”) verification.
The exchange said in a blog post Thursday its new “Level 1” accounts will only require users to register with an email address and password. “Any customers who sign up from here on out can begin trading in seconds with a Level 1 account,” reads the entry.
Level 1 users can deposit and trade an unlimited amount of cryptocurrency. They can also withdraw a maximum of $10,000 every day. There are also opportunities to stake proof-of-stake (PoS) coins on the platform.
Poloniex users have reportedly requested the exchange provide a means to trade cryptocurrency “without giving up on their identity”, the blog post reads. It continued, “To our long-time unverified customers, we know how frustrating your experience has been recently and we’re dedicated to improving that for you.”
The exchange will update older non-KYC verified accounts to the new level 1 tier, a process expected to take several months to complete.
Payments company Circle spun out Poloniex in October, less than two years after it acquired it for $400 million. Weeks later, Tron founder Justin Sun revealed he was part of a group of investors that acquired the exchange from Circle, also for a reported $400 million.
Poloniex moved from Delaware to Bermuda, when it was a Circle subsidiary. The exchange, which firewalled U.S. residents in November, has said it will now focus on business elsewhere. U.S. residents had until Dec. 15 to withdraw remaining funds from the exchange.
Poloniex first introduced KYC checks in early 2018 to comply with existing identity and verification requirements. In May, the exchange said users who hadn’t completed the KYC checks would have their accounts frozen within 14 days.
Back in 2015, founder Tristan D’Agosta said the exchange was legally obligated to follow rules set by the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury. Now that it has completely ceased its U.S. operations, those rules may no longer apply.
Other non-U.S. based exchanges have similar withdrawal limits. Binance, which stopped serving U.S. customers in September, allows users to withdraw as much as 2 BTC – approximately $15,000 – without KYC verification.