Unlike traditional cryptocurrency exchanges, users will not be asked to complete a know-your-customer (KYC) verification process as a prerequisite to withdrawing fiat. MEW further emphasized that its solution is regulatory compliant in spite of the friction-less process.
MyEtherWallet’s solution comes in the form of a partnership with Switzerland-based brokerage company Bity — which provides finance and crypto services to clients around the world. It is also one of the few Swiss crypto ATM operators, with installations in five major cities. According to the official announcement, the arrangement between the two companies will give users direct access to Bity’s regulated crypto-to-fiat gateway.
We are thrilled to announce a new integration with our long-time partner @bity :
See our Medium for details!https://t.co/KItbYYgbXm
— MyEtherWallet | MEW (@myetherwallet) February 20, 2019
Fully-Regulated Fiat Corridor (But No KYC?)
Since Bity is compliant with the Swiss Anti Money Laundering Ordinance (AMLA), the gateway is legal in the eyes of local regulators. Furthermore, since MyEtherWallet does not hold a user’s private keys in the way every other centralized exchange does, it enjoys the benefit of reduced liability. Notably, however, the limit for KYC-less withdrawals has been set at CHF 5,000 — approximately equal to $5,000.
The announcement comes only a couple weeks after the platform’s development team rolled out MEW V5, a complete redesign and overhaul of the website. Even though the bulk of the update is largely cosmetic, the website has also implemented several back-end changes that will improve the overall user experience. One of those changes naturally includes support for Bity’s fiat gateway.
The blog post includes instructions on how users can immediately test the new exit-to-fiat option within MEW V5. In short, users only need to input their phone number and bank account details to convert their crypto to fiat. Of course, most phone numbers and bank accounts are KYC’d, so transactions can still be traced back to users in some fashion.
The list of supported crypto assets is rather short at the moment, with only Bitcoin (BTC) and Ethereum (ETH) options available. As for fiat currencies, Bity offers withdrawals only in Swiss francs and euros for now.
KYC Requirements at Other Exchanges
With the cryptocurrency market surging in popularity over the years, governments and regulatory bodies around the world have mandated that all crypto exchanges comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.
To that end, even peer-to-peer exchanges such as LocalBitcoins have started to demand KYC verification from its users. Linking user accounts to personal identities allows authorities to track the movement of money in and out of crypto assets for taxation and other purposes.
Will you use MEW to liquidate your crypto assets? Let us know what you think about KYC in the comments below!