Customers exit Binance on KYC mandate

Binance noted that its decentralised, no-physical-headquarters was a profit, but Zhao said in July “that the exchange is eager to collaborate with local regulators to be licensed everywhere,” Cointelegraph reported.

The Chief Executive officer (CEO) of the cryptocurrency exchange Binance said about 3 per cent of the firm’s users left the discussion after knowing your customer (KYC) manners were made compulsory.

Like other commercial organisations, major cryptocurrency exchanges worldwide receive KYC or identity verification compulsory for users to receive constant access to their services. “Binance allows customers to create accounts, use basic functions and perform limited transactions without submitting KYC information. To gain full access and increase higher deposits and withdrawal limits, customers will need to complete the KYC verification process,” the company stated in a blog post.

Changpeng Zhao, the company’s CEO, told Bloomberg, “We have chosen to go with full compliance, full mandatory KYC for global users, for every feature. We feel that being compliant will allow more users to use us. Most people do feel more comfortable using a licensed exchange. Most people – 96 percent, 97 percent of users – go through KYC. We only lose 3 percent of the users.”

Earlier, Binance noted that its decentralised, no-physical-headquarters was a profit, but Zhao said in July “that the exchange is eager to collaborate with local regulators to be licensed everywhere,” Cointelegraph reported.

The crypto exchange demonstrated that for users worried about the ethos of anonymity via decentralised blockchain, “losing anonymity is a high price to pay especially when they submit their KYC details to centralised cryptocurrency exchanges,” the company asserted. “While cryptocurrency exchanges promise to treat users’ private information with care, many people who prefer to maintain anonymity don’t want to take that chance. These fears are not unfounded since many exchanges still do not have robust KYC systems to secure consumer information.”

Meanwhile, above 50 percent of cryptocurrency owners consider crypto as a source of income, with 15 percent thinking of it as their primary source of income, according to a report published by Binance Research.

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