Binance Lost 90% Of Customers And Billions Of Dollars Due To KYC

In one of the interviews, employees of the Binance crypto exchange spoke about the current situation that has overshadowed the reputation of the exchange. We are talking about the company Reuters, which claimed that Binance is associated with illegal activities. Here’s how the investigation has affected Binance, according to the exchange. 

They do not exclude the possibility that the exchange missed the criminal organization Hydra, which laundered money with the help of Binance. However, at that time, the exchange was only developing. She couldn’t keep track of every user, and KYC wasn’t that hard. In an interview, representatives of the exchange cited Coinbase as an example, emphasizing that this exchange “was able to detect part of the transaction that came from the Helix mixer and kicked it off the platform.” 

However, Binance still identifies users associated with illegal activities and blocks them despite this. As the company expanded, so did KYC. For example:

“In July 2021, Binance decided to lower the controversial 2 BTC withdrawal limit for non-KYC accounts to 0.06 BTC.”

When asked if there was a noticeable decrease in illegal activity after this change, Binance noted that they had conducted their research on this matter. It turned out that not only this has changed:

“We lost 90% of customers and billions of dollars after implementing KYC.”

Now Binance is more thorough in its audits and follows the letter of the law when it comes to activities in other countries, for example. Recently, the exchange has been striving to obtain licenses for activities in different countries. According to representatives, this is not easy to do, as countries’ laws differ. 

“If you look at the registration requirements in France, they are very strict, and the due diligence and verification requirements are very high. So if you look at it, you can understand our real business, ” the exchange employees concluded.

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