After KYC was introduced, 3% of customers left Binance
Changpeng Zhao reported that most people feel more comfortable using a licensed exchange
18.11.2021 - 11:40
595
1 min
0
What’s new? Speaking to Bloomberg News, Binance exchange CEO Changpeng Zhao noted that the platform has made the Know Your Customer (KYC) process mandatory for users in an attempt to meet regulatory requirements. He said that Binance has lost about 3 % of customers since the introduction of mandatory KYC.
Zhao's interview with Bloomberg News
“We feel that being compliant will allow more users to use us,” Zhao said, adding that most people feel more comfortable using a licensed exchange.
What events preceded it? Binance positioned itself as a decentralized entity without a physical head office. However, Zhao stated that the crypto exchange is ready to work with local regulators and set up a headquarters. He added that regulators were initially skeptical of Binance, their opinion has changed as the interaction continues:
“We want to be licensed everywhere. From now on, we are going to be a financial institution.”
What is KYC? It is a common practice used by crypto exchanges and traditional financial institutions. It allows companies to verify a user's identity by requesting some form of real identification. Binance made KYC mandatory for all its existing and new customers on August 20 so that they can access products and services.
Useful material?
Incidents
Users were urged to withdraw funds before the site was completely shut down on November 7
May 8, 2024
Market
The outflow persists for four weeks
May 7, 2024
Market
The assets were valued at $630 000 at the time of receipt
May 6, 2024
Incidents
Roger Ver has been accused of not paying taxes
May 1, 2024
Mining
After the publication of the financial report, the company’s shares added 5%
Apr 30, 2024
Market
The commission had previously warned the developer of potential enforcement actions
Apr 29, 2024