After implementing KYC, Binance lost 3% of customers

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The CEO of Binance exchange said that the introduction of mandatory KYC will attract more institutional investors to the site. But some customers chose to migrate to other platforms.

Binance founder Changpeng Zhao believes that after his exchange took a course of regulatory compliance and working closely with regulators, it managed to retain the majority of its clients.

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According to Zhao, this is not only the merit of the exchange, to a large 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 churn only 3% of users who really have something to hide.

“We have made KYC a requirement to attract new users as institutional investors are motivated to keep their activities compliant with regulatory requirements. After we made KYC mandatory, Binance lost about 3% of its users. This is not much, we expected more churn. ”

For many years, Binance has positioned itself as a decentralized trading platform with no real office, Zhao said. 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.

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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.

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