- Strict KYC policies of Binance have given a tough time to the exchange.
- Binance has suffered a loss of 90% of customers along with billions in revenue after implementing KYC.
- Binance’s trading volume is $14.5 billion, far more than FTX and Coinbase.
Binance, the world’s largest cryptocurrency exchange has lost a major chunk of revenue after carrying out KYC.
In an interview, Matthew Price and Tigran Gambaryan, former investigators, shared that strict KYC policies of Binance have led to consequences for the exchange.
We have lost 90% of customers after implementing KYC, losing billions in revenue.
In July last year, Binance decided to reduce the 2-BTC withdrawal limit to 0.06 BTC for non-KYC accounts.
According to Price and Gambaryan, the decision has caused a significant difference in terms of illegal activities as a percentage of total transactions.
Binance said they have lost 90% of customers after implementing KYC, losing billions in revenue. However, the data shows that its trading volume is still huge, even more than other cryptocurrency exchanges combined. https://t.co/cQsoQIVuvI— Wu Blockchain (@WuBlockchain) August 1, 2022
Gambaryan mentioned that Binance is either similar or better than other exchanges. He said that their staff is far better than Coinbase and Kraken in certain areas.
Additionally, he said that if the entire percentage of transactions is considered, there lies a major difference in terms of illicit activity that’s not only in deposits. Compared to its contenders, Binance is significantly larger.
If illicit activity is analyzed across the industry, it is the same. Nothing in particular states that Binance is a hub of criminal activity.
Binance’s trading volume is $14.5 billion, which exceeds FTX as well as Coinbase. The former has a trading volume of $1.3 billion, while the latter’s trading volume is $1.2 billion.
During the past few years, Binance as well as its CEO CZ or Changpeng Zhao have become the topic of media headlines and reports regarding KYC and AML policies.