Friday, October 7

Binance CEO Revealed How Many Users Left the Platform After KYC Verification Was Implemented

The popular cryptocurrency exchange Binance, adopted a flexible position towards the legal requirements requested from the exchange, after years of repeated conflicts with regulatory institutions around the world. For this reason, it implemented the mandatory “KYC” identity verification for all users of the platform. And surprisingly, it performed positively in terms of user retention, according to a interview al CEO de Binance, Changpeng Zhao.

In some statements officials to Bloomberg. Zhao said that Binance made the KYC (Know Your Customer) verification processes mandatory “for all users globally” in an attempt to attract new users to the platform. Demonstrating that the company complies with the requirements demanded by the regulatory institutions. Also, Zhao pointed out that the Binance platform lost only 3% of its users after implementing KYC verification.

Binance's KYC verification process is mandatory.  Source: Binance
Binance’s KYC verification process is mandatory. Source: Binance Support

KYC is a requirement that is becoming more and more common in cryptocurrency exchanges, in order to comply with the requirements of regulators. KYC allows exchanges to verify the authenticity of a user, requesting some form of identification, such as an ID or a driver’s license. Binance implemented the mandatory KYC for all users of the platform on August 20. This as a requirement to access their services, such as cryptocurrency transactions, exchanges and withdrawals.

“We believe that compliance with the KYC will allow more users to use our services,” said Zhao. And he added that most users feel more secure using an exchange with all the licenses and requirements required by law.

Binance and its approach to regulatory institutions

The Binance platform touted its decentralized and non-regulable structure for years. Until its CEO, Changpeng Zhao, ad In July the exchange was ready to work with local regulators saying, “We want to be licensed everywhere. From now on, we will be a financial institution.

Despite its flexible stance with regulators, Binance has recently published a list of “fundamental rights”, arguing that everyone should have access to an important financial tool such as cryptocurrencies.

CEO Changpeng Zhao told Bloomberg that the list of “fundamental rights” is a reflection of what Binance considers most important when it comes to regulating cryptocurrencies.

“These are rights that we believe will help safeguard the cryptocurrency experiences of traditional users, and we welcome all opportunities to engage in an open dialogue with industry leaders, regulators, legislators and users.” Binance manifested on its official website with respect to published “fundamental rights”.

In the recent interview with Bloomberg. Zhao said that regulatory institutions were initially skeptical about the Binance platform and other cryptocurrency exchanges. However, his stance has changed as the conversations and the growing global adoption of cryptocurrencies continue.