Binance founder and CEO Changpeng Zhao said in a statement that the exchange has spent more than $1 billion on preparation and compliance with regulations.
“90% loss of customers headline clicked”
Talking about the title “Binance suffered a 90% loss of customers due to the KYC application” that appeared on the Coindesk site recently, “CZ” said, “This is a completely wrong transfer. If you look at the numbers, you will see everything. However, it is true that such headlines always bring more clicks,” he said, and criticized this article of the news site.
Coindesk, at the end of an interview with a regulation employee of Binance, made a report stating that KYC practices cost the stock market 90% of its customers and the loss reached billions of dollars. Coindesk later corrected/updated the news and stated that customer losses were caused by AML (money laundering measures) rather than KYC.
“Our market share has increased, not decreased”
Checking the figures once again after this news, CZ said, “I have checked now. As Binance, we have spent more than $1 billion on regulatory compliance studies. We have been successful in most of them. Binance’s market share has also increased, not decreased. Both the blockchain and 3rd party company data show this.”
“90% reduction in a single Binance-affiliated institution”
A spokesperson from Binance, who made statements to the Forkast site on the subject, clarified the misunderstanding in this situation and said:
“Customers in an organization connected to the platform had to leave due to violation of regulatory rules. This is how customer loss occurred. The trading volume of these users was even less than 0.001% of Binance’s daily trading volume.”
As it is known, binance, which has almost stepped up on regulation in the last 1 year, has obtained the necessary licenses from important jurisdictions such as France, Dubai, Abu Dhabi and Bahrain.
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