A few months ago, Binance released a guideline that made it compulsory for every user of its services to undergo a thorough KYC procedure. It was greeted with mixed reactions from different quarters, as some felt that the notable crypto exchange, Binance, was positioning itself as a KYC-compliant exchange to increase the quality of clients that used it.
One of the reasons that Binance implemented the rule was to follow the laws released by different regulators in varying regions, concerning crypto operations within their countries. The exchange is moving from its initial plans of being a decentralized exchange and has added some policies that show that it is finally embracing centralization. Examples are the siting of new offices in Ireland
According to an interview with Bloomberg, CZ stated that:
“When we started, we wanted to embrace the decentralized principles, no head office, work anywhere in the world, no borders, and it’s very clear now to run a centralized exchange, you need a centralized legal entity. the structure behind it.”
CZ also noted that since the KYC policy became compulsory in the exchange, over three percent of its users have stopped utilizing the exchange.
The founder thinks that adding this policy will attract more users. In the interview, he stated that:
“We believe that being compliant will allow more users to use us.” Apart from the aforementioned, Binance has shown that it is ready to make changes to accommodate regulators.
