Did Binance KYC Filter Out Majority Of Users? CZ Clarifies With Facts

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CoinGape
11w ago2022-08-01

Binance KYC process was performed with a total cost of $1 billion as part of compliance efforts, the company CEO said. The crypto exchange has actually grown in the recent times, CZ said, refuting claims of loss of user base. He responded to claims that a bulk of Binance’s customers were filtered out in the KYC process. The Binance CEO also said that deposits on the platform had increased in the recent months.

Binance KYC Was Done With A High Success Rate, CZ Says

Reacting to claims that the crypto exchange lost 90% of its customers thanks to KYC implementation, CZ said the exchange’s market share did not drop. He said blockchain data proves that Binance’s market share had increased. In fact, the exchange is the leader among exchanges in terms of market share, he added. The crypto deposits have increased steadily over the past months or years, he explained. It was however revealed that the KYC implementation process costed the company $1 billion in revenue.

“Binance spent more than $1 billion on compliance efforts, with a high pass rate. It’s fine. Binance’s market share increased, not decreased. The blockchain and third party data shows it.”

High Crypto Transactions In BTC And ETH In Recent Times

CZ also shared Glassnode reports showing Bitcoin deposits leaving crypto exchanges. However, the figures he shared from last month show that Binance is still the largest holder of Bitcoin balances among exchanges. Not only Bitcoin, but Ethereum (ETH) activity too took a jump on Binance recently. The number of ETH transactions on the platform took a huge spike last week thanks to the low gas fee.

There was high Ethereum utilization on Binance as ETH gas fee dropped to historic lows. It is believed that the low gas fee could be a result of the upcoming Merge on Ethereum.

Anvesh reports major developments around crypto adoption and price analysis. Having been associated with the industry since 2016, Anvesh is a strong advocate of decentralized technologies. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.