Cryptocurrency exchanges are going to next level user verification methods that are freaking people out. When these exchanges and the interest in cryptocurrencies was in primary stages, a user could register with the help of an email address and a password.
As the markets started growing, 2FA became popular, and email verification was introduced along with Google Authenticators. Now, the third generation of verification methods has arrived, which looks weird and otherworldly at its best.
Attackers are getting more sophisticated and carrying out bigger heists. Therefore, the exchanges have taken it upon themselves to tackle the issues. Note that several of these exchanges also operate as hot wallets, holding cryptocurrencies on users’ behalf.
To keep their customers safe, the new authentication method come with a range of objectives- they help in removing bots from their websites and eliminate spam. High-end verification methods also act as due diligence on the part of the operator, which helps them in legal cases stemming out of grievances.
Binance uses one of the most popular and awkward verification methods. Their ‘Fit the puzzle piece carefully’ method has become a piece of ridicule in the crypto community and has also become the center of a new meme. This is not all, the customer support at the company had a hard time helping people who could not fit the puzzle as the website demanded.
Another company, Kucoin, started asking odd questions to its customers a few weeks ago. For instance, the customers were asked to confirm the URL of the website and confirm that they have two years of experience in trading funds, securities, futures, and gold, etc. They were also asked to verify that they were officially 18 years old and can bear at least 50% loss in their coins and their asset value could even go down to zero.
The exchange also asked the users to verify that they comply with all anti-money laundering laws in their respective countries and will accept a review from authorities under “necessary circumstances.” This list is displayed every time a person logs in, effectively annoying the users.
A similar annoyance has become common for Bittrex customers who are being forced to log in twice, only after they have clicked a confirmation link to their email. This email suggests that the exchange doesn’t recognize the user’s IP, even if they are using their usual device. This makes sign in difficult and unnecessarily long, because of which users face several issues.
The most unusual verification method is being used by Gate.io. You cannot complete the KYC for this exchange in a public space. This is because the users are given a list of 9 gestures, out of which four need to be recreated on the webcam. These gestures look like gang signs, but they effectively filter our bots, even though they look bizarre and will never let you sign in to your account in a public space.
However, a common consensus in the crypto community is that these methods are put in place for their own safety. No other industry could have tolerated such unorthodox measures.
