Introduction

In our last blog, we announced that Cryptophyl would be applying for FCA-authorisation in the United Kingdom to continue trading as a cryptocurrency company and would be requiring users to complete identity verification to process withdrawals larger than €150. This is no longer the case: users will be able to withdraw from Cryptophyl without completing identity verification.

The correct path forward

Having considered the feedback that we’ve received from users, we’ve made the decision that we’ll be operating the exchange from a non-EU jurisdiction and thus would not be subject to the stringent regulations imposed by the European Union on all of our customers.

A large part of our customers felt that the new requirements to continue trading on Cryptophyl were unnecessarily strict. Given the nascent nature of SLP markets and our position as a start-up exchange provider, we decided user retention and growth was more important than remaining incorporated in the United Kingdom and European Union.

What information will we collect?

We’ll be collecting basic personal information to ensure that we are compliant with applicable laws and regulations. This includes phone number verification, which is required for withdrawals. You can verify your phone number to continue using Cryptophyl here.

The level of information we collect is consistent with other companies in the space and is generally considered a bare minimum.

Identity verification

We won’t be requiring identity verification to process withdrawals by default. In a very small number of cases where users withdraw significant volumes or engage in activity which would warrant enhanced due diligence, as per our user agreement, we reserve the right and have a regulatory obligation to conduct identity verification.

Earn DROP for verifying

We’ll be rewarding the first five users to pass verification for Level 2 accounts with 200 DROP tokens currently worth $65. We’ll send out an email once identity verification is live.