Binance has reportedly lost 90% of users to KYC

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As one of the largest cryptocurrency exchanges in the world, Binance, like most of its competitors, faces challenges related to money laundering, terrorist financing and negative press. Binance Approved by the Voice of its Senior Management It has lost 90% of its users after setting up the KYC system, Loss of billions of dollars of income.

Learn more about the trading giant’s activities

Three of the most experienced employees in the compliance department Binance, in a recent interview published by CoinDesk on August 1, discussed the challenges the world’s largest cryptocurrency exchange by trading volume is facing in these areas and how it has impacted them.

Specifically, in July 2021, Binance made the controversial decision to lower the maximum number of bitcoins. Clients without a Binance KYC account (Know your customer) can revoke from 2 BTC to 0.06 BTC.

However, according to Tigran Ghambaryan, a top Binance official, the move cost the cryptocurrency exchange “billions of dollars in revenue”. He explained that the size Binance exponentially larger compared to its competitors, but with “real math,” he noted. the level of illegal behavior is the same for everyone. He explained:

We have lost 90% of our customers after implementing KYC and have lost billions of dollars in revenue as a result.

However, this information was just personally debunked by the charismatic Binance boss CZ on his Twitter account, who is calling to take a look at the numbers.

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This is a completely wrong quote. Look at the numbers … 😂😂😂

But the fact is, such a title sells more clicks … Sad but true. https://t.co/Zuega2hMjU

– CZ 🔶 Binance (@cz_binance) August 1, 2022

According to Binance research, the amount of illegally smuggled money will be compensated total volume of a very large trade. Indeed, we see that although illegal money is coming, meaningful funds and good money come first. Tigran Ghambaryan observes:

Binance is better or performs as well as most exchanges. Our system was radically better than Kraken, better than Coinbase in some areas, and worse in others. But there is no detour.

Binance operates in many jurisdictions, which, according to the compliance officer, “complicates the job”, so Gambaryan admitted that the exchange needs to be more focused on specific countries (France, Italy and Dubai). However, the fact that you work in these areas allows law enforcement to do so. act.

There is a big difference [dans le montant de l’activité illicite]and not just in deposits, if you look at the total percentage of transactions. Binance is exponentially larger than its competitors.

Binance, in particular, also answered various questions on using a VPN To circumvent local laws:

For your information, no platform blocks VPNs. No cryptocurrency exchange blocks VPN activity. VPN activity is not a sign of criminal activity. This in itself is not a sign that someone is a criminal. Using a VPN isn’t illegal and isn’t blocked from trading. That said, without going into too much detail, VPN activities can be beneficial. [pour les enquêtes]. Some users, in fact, are used to using this type of network, which, combined with other elements, allows us to know who these people are. A VPN has never stopped me from tagging anyone.

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Binance remains the undisputed market leader

Binance recently overtook Coinbase to become the exchange with the largest number of bitcoins in the world thanks to strong public relations efforts and obtaining one official permission Dubai in March, Bahrain, France and Italy in May and Spain in July 2022.

These efforts show a strong desire to further develop the exchange. Binance was founded just 5 years ago and undisputed market leader and continues to gain market share. Although KYC measures have slowed its growth, the exchange is strengthening its dominance in the cryptocurrency market on a daily basis.

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Cryptocurrencies are a risky investment.

To find out more about the next 3 projects that may be listed on Binance, check out our latest article here.

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