Binance Founder: Binance lost 3% of its customers due to KYC requirements


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In a Bloomberg interview with “CZ,” which is the title of Binance CEO, the basic rights of users of the newly released cryptocurrency from Binance were discussed, and he admitted that his platform, the largest trading platform by volume, lost about 3% of its customers due to “know your customer” requirements. imposed by the company as a result of regulatory pressures.

When CZ was asked if users had left the platform due to the compliance tightening, he said:

We have chosen to fully comply with the KYC requirements of global users, for each feature.

We feel compliance will allow more users to use the platform.

Most people feel more comfortable using a licensed trading platform.

Most people can say that 96%, 97% of users go through KYC.

We are only losing 3% of users.

What you need to know:

Know the Customer (KYC) is a practice used by cryptocurrency exchanges and traditional financial institutions.

This enables companies to verify a user’s identity by requesting some form of identification in the real world.

On August 20, 2021, Binance made KYC a mandatory procedure for all its new and existing users to access its products and services such as cryptocurrency deposits, trading and withdrawals.

During the same interview, CZ was asked about the efforts Binance has made to comply with regulations, and he had something to say, here are some of it:

We’ve had many interactions.

Where the organizers are suspicious of us at first, and then as we communicate with them more and more, attitudes really change.

He added:

In-person meetings are important.

Just having that first interaction in person is important.

For me personally, unfortunately for the past two years, I have not been able to travel.

But for the past two months with travel restrictions lifted in different places, I’ve been traveling.

When people see me in person, they say, Look, CZ is reasonable, he’s very calm, not a crazy man

This helps build their confidence faster.

CZ also made some comments about the digital currency Squid.

As the crypto community knows, the price of the digital currency “Squid” created on the Binance BSC blockchain rose by more than 230,000% to about $2800, after which it declined to trade with less than a cent.

CZ commented on this by saying:

If project teams hide their tracks very efficiently, it can take a long time to discover their identity.

This is one of the downsides of decentralization.

Where they may be anywhere in the world.

It would take a very concerted effort to actually find them.

He further emphasized the need for learning in the cryptocurrency space, saying:

Learning is the best preventative measure for this type of situation.

It is very important for users to realize that everything they do, and everything in this world has risks.

You just have to understand what these risks are and deal with them accordingly.

When asked about innovations in cryptocurrency that interest him, he said:

We see these new types of financing instruments as more comprehensive.

While students study, they can earn different cryptocurrencies, and they can actually pay because cryptocurrencies hold value.

From now on, you will likely see many innovative use cases where you can do anything to earn.

Speaking about the cryptocurrency disaster, Squid, CZ also told:

Do not invest in projects that you do not know well and do not trust.

If you do, be prepared, and know that if you have limited information, these rug pulls may be possible.

Read also:

Peru is actively developing its own central bank digital currency, CBDC

Teen arrested for stealing more than $36 million in cryptocurrency

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