Binance Experienced Financial Losses Due to KYC Procedures

Cryptocurrency exchange Binance lost “about 90% of its customers and billions of dollars of revenue” due to the introduction of KYC procedures, CoinDesk has reported.

According to representatives of the exchange’s compliance team, in July last year, Binance introduced withdrawal limits for unverified users. As a result of this, the daily withdrawal limit has decreased from 2 BTC to 0.06 BTC.

The company made this decision to combat money laundering and reduce illegal activity, but it directly affected the number of users and the company’s income.

Representatives of the compliance team have denied the information that Binance CEO ignored their calls for a free KYC policy and anti-money laundering.

Tigran Ghambaryan, Vice President of Global Intelligence and Investigations at Binance, has said:

“I know for sure that CZ made decisions that cost Binance a lot of money. We have deleted accounts with millions of users due to risk-based decisions. It cost billions of dollars, but he supported this move.”