CEX.IO, the United Kingdom-based cryptocurrency exchange has reportedly now made a requisite to its users to disclose their identities. The financial trading news outlet Finance Magnates has reported this on Dec. 11.
CEX is a London-based cryptocurrency trading platform, which was established in 2013. Initially, it was started as a cloud mining provider. Now the exchange supports eight major digital currencies and four major fiat currencies. According to CoinMarketCap the adjusted daily trading volume of CEX is around $4.9 million.
While the Brexit situation still remains cloudy, CEX.IO does business with clients internationally. It also aims to adhere to the relative international regulations, which also includes the EU’s Fifth Anti-Money Laundering (AML) Directive. The directive was implemented with full force in July 2018, and EU member states have a deadline till Jan. 10, 2020 to implement it in their respective national laws.
As per the reports, it has been seen that CEX.IO has to perform operations in accordance with U.S. law, since, it is also a registered member of the Financial Crimes Enforcement Network (FinCen) of the United States Department of the Treasury. On company’s decision the Regulatory Affairs Counsel Serhii Mokhniev commented that they have implemented mandatory verification for customers transaction of fiat currency long before the Fifth Anti-Money Laundering Directive was adopted in the EU and they have always understood the importance of dealing with virtual currency within a legal framework.
In December 2017 it was reported that the U.K. and EU collaboratively announced that they were planning a crackdown on crypto-enabled tax evasion and money laundering. In line with directives in the EU, the increased regulations are intended to limit the amount of anonymity possible for cryptocurrency traders.