Mandatory KYC decision results in a huge loss for Binance

Binance exchange confirmed that it faced a significant downfall in its revenue because of the mandatory KYC rule & reduction of the Bitcoin withdrawal limit to 0.06 BTC.

Binance is a first-ranked crypto exchange in terms of global trade volume on its platform. In mid-2021, Due to regulatory actions against the Binance exchange’ crypto offerings, Binance introduced mandatory KYC provisions for the customers and also reduced the Bitcoin withdrawal limit from 2 BTC to 0.06 BTC for non-KYC users, to force the customers to go through KYC verification. 

On 1 August, Three senior members from the Binance exchange appeared in an interview with Coindesk. According to the interview summary, Binance faced significant value of revenue loss because of the reduction of the Bitcoin withdrawal limit to 0.06 BTC for non-KYC users.

Binance’s lead Compliance Officer, Tigran Gambaryan, said:

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“We have lost 90% of customers after implementing KYC, losing billions in revenue.”

The report published by Coindesk under the title “Binance Compliance Officer: KYC Cost Exchange ‘Billions in Revenue” was wrong. Binance lost significant numbers of users but not that much in revenue.

Changpeng Zhao, CEO of Binance, took to Twitter and said that the loss figure is very big, and such news titles help to get huge numbers of clicks, which is a sad truth.

It’s a complete mis-quote. Look at the numbers…

But the fact is, this type of headlines sell more clicks… Sad, but true. https://t.co/Zuega2hMjU

— CZ Binance (@cz_binance) August 1, 2022

Through the interview, Binance senior member admitted that Binance is weak in some areas but also strong in some particular categories, which creates significant competition against the rival crypto platforms.

“Binance is better or the same as most exchanges. Our stuff was drastically better than Kraken, better than Coinbase in some areas, and worse in some areas. But there’s not a single outlier,” a senior member of Binance said.

At present, the Binance exchange is standing at the top rank and this exchange is leading the crypto industry and other crypto projects via its guidelines & financial help. Even the Binance team helped the team of Axie Infinity’s Ronin Bridge protocol, which faced a significant impact because of a hack attack.

Read also: Crypto adoption surging in Minnesota

Mandatory KYC decision results in a huge loss for Binance

 

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