International Distributed Ethereum Exchange (IDEX) will introduce mandatory verification in the near term.
According to the report, all users on International Distributed Ethereum Exchange (IDEX) will have to verify their accounts in line with the AML policy and restrictions.
The company representative agrees that the exchange is actually not a decentralized platform in common sense.
"IDEX is not a “DEX” in its current state. At this point the best way to describe IDEX is as a “non-custodial” or “hybrid-decentralized” exchange," he noted.
As a result, Aurora DAO, developer of IDEX, is going to apply KYC under AML requirements, while earlier they opposed exchange's decentralized status to these measures. Moreover, it was said that the regulation in the crypto sector is getting more complicated lately. The company cited the recent measures launched by different authorities, including the Securities and Exchanges Commission, Office of Foreign Asset Control, Financial Crimes Enforcement Network and Financial Action Task Force.
The verification will have several stages depending on the trading amounts. Specifically, traders which deal with small amounts will have just to provide general data, though the transactions covering large funds will require more detailed and complicated verification.
In addition, the company also explained this move by the recent message of the CFTC member, saying that developers can be changed of illegal activities performed by third parties via their smart contracts.
"All of this suggests that the use of a smart contract will not make one exempt from KYC/AML," as the report reads.
Notably, the company spokesperson said that there are no trading platforms that would fully conform to total decentralization. At the same time, staying aside the governmental monitoring can entail problems for the users and slower operations.