Poloniex cryptocurrency exchange has launched a new “level 1” account tier that has no KYC (know-your-customer) requirements.
The level 1 account tier type by Poloniex exchange reportedly allows new users to withdraw as much as $10,000 per day. There’s only the requirement of a verified email address and password.
Poloniex exchange claims the decision results from customer feedback. Besides, one cannot deny the rationale behind the move as other exchanges support such features. For instance, Binance allows withdrawals of up to 2 Bitcoins (the equivalent of about $15,000) without KYC.
Notably, the exchange also said that Level 1 accounts hold access to most of the features on Poloniex. But, there are some advantages you get when you upgrade to Level 2 such as margin trading and lending. As well as faster resolutions when you’ve lost access to your account.
How is the security for level 1 accounts?
Poloniex exchange confirmed that level 1 account get a different type of security and recovery services. Although the exchange strokes a balance by saying: “We go to great lengths to protect all Poloniex accounts. But, we also want our customers to be vigilant and protect their own. If you lose access to your account, we’ll do our best to help you regain access. But we cannot guarantee the resolution time or our ability to do so.”
The exchange gave some nuggets of information to help users maintain security. Firstly, they recommended the use of two-factor authentication. The exchange claims it offers greater protection from possible attackers attempting to log into your account than just using a password.
Additionally, Poloniex exchange advised users to back up their 16 digit key. The exchange explained if the device used for two-factor authentication is not available, then the 16 digit key prevents the user from losing access to their account. Also, the exchange advised users to be cautious of the websites they make use of. Saying: “We’d like to remind you that your 2FA codes and the backup codes remain secure if you don’t provide this to a malicious site.”
Importantly, Poloniex exchange currently doesn’t serve customers in the United States. The exchange made this decision after spinning off from Circle. The exchange also enjoyed a rebound in its market share since the spin-out.