February 27, 2024

The introduction of KYC deprived Binance of 3% of customers

The CEO of the Binance exchange said that the introduction of mandatory KYC will attractMore Institutionalinvestors to the site. But some customers chose to migrate to other platforms.

Binance Founder Changpeng Zhaobelieves that after setting a course of regulatory compliance and working closely with regulators, his exchange has retained the majority of its clients.

According to Zhao, this is not only the merit of the exchange, butto a greater extent, this is due to the fact that the bulk of customers do not mind following the rules. They understand that the requirements of regulators reduce the risks of trading on the site. Even the introduction of the mandatory Know Your Customer (KYC) procedure led to a churn of only 3% of users who really have something to hide.

“We have made KYC a requirement toattract new users, as institutional investors are interested in their activities to comply with regulatory requirements. After we made KYC mandatory, Binance lost about 3% of its users. This is not much, we expected more churn. "

According to Zhao, Binance has positioneditself as a decentralized trading platform without a real office. This is already in the past, and now the exchange is ready to work with regulators and wants to be licensed in any country. The exchange is interested in being a licensed financial institution.

Binance CEO Changpeng Zhao recently revealed that the company is trying to obtain a digital asset service provider license in France and open a headquarters there.