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August 1, 2022

CZ Clarifies Binance KYC Leading to Loss of Users

According to the statements made by the CEO of the firm, the Know Your Customer (KYC) procedure for Binance was carried out at a total cost of one billion dollars. CZ rebutted reports that there had been a decrease in the user base by stating that the cryptocurrency exchange has, in fact, risen in recent months. 

He addressed the allegations that the Know Your Customer (KYC) procedure eliminated the majority of Binance’s potential clients. Additionally, the CEO of Binance said that there has been a rise in the number of deposits made on the platform in recent months.

In response to allegations that the cryptocurrency exchange had lost the majority of its clients as a result of the installation of KYC procedures, CZ said that the exchange’s market share had not decreased. According to him, the data from the blockchain demonstrates that Binance’s share of the market has risen. 

In point of fact, he went on to say that the exchange was the most dominant among exchanges in terms of market share. He said that the deposits of cryptocurrencies have been continuously growing over the last few months or years. However, it was discovered that the process of implementing KYC resulted in a revenue loss of one billion dollars for the corporation.

More than one billion dollars was spent on compliance initiatives by Binance, which resulted in a successful passing rate. It’s all good. There was a growth, not a reduction, in the market share held by Binance. The data from third parties and the blockchain demonstrates this.

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CZ also released evidence from Glassnode that showed Bitcoin deposits being removed from cryptocurrency exchanges. Nevertheless, the numbers that he presented from the previous month demonstrate that Binance remains the exchange with the highest holder of Bitcoin holdings overall.

Recent developments on Binance have shown an increase in activity for not just Bitcoin but also Ethereum (ETH). In the last week, there was a significant increase in the number of ETH transactions that took place on the platform as a direct result of the reduced gas charge.