According to the announcement, the reason for the upcoming mandatory KYC is the 5th EU Anti-Money Laundering Directive (AMLD5). CryptoBridge also noted that the company wants to challenge international financial regulation:
“While we still strive to present new challenges for international financial regulation, we are facing the 5th EU Anti-Money Laundering Directive (AMLD5) and will adjust our gateway services to pave the way for CryptoBridge moving forward.”
Following this policy change, all CryptoBridge users are required to submit to identification before continuing to use deposits and withdrawals. The platform said the measure is meant to “protect customers and CryptoBridge from being held responsible for any illegal intentions or money laundering activities.”
CryptoBridge also said that the introduction of the AMLD5 regulation creates legal status for crypto assets, “enables them to become viable and legitimate financial networks”. It also facilitates the listing of security tokens on the platform.