Amid KuCoin trade getting ready to undertake obligatory Know Your Buyer (KYC) checks, the firm’s CEO argued that privateness is not the most essential feature of Bitcoin (BTC).
“On the subject of the function of Bitcoin creation, I believe privateness is only one of its options,” KuCoin CEO Johnny Lyu advised Cointelegraph in an interview on July 4.
As a substitute of privateness, the core profit of Bitcoin is a unit of trade, which permits holders to hedge in opposition to recessions, Lyu stated. The CEO talked about that Bitcoin was created after the 2008 financial crisis, which was triggered by the United States subprime mortgage disaster. “These occasions led to the start of Bitcoin,” Lyu famous.
Whereas some could imagine that overly strict KYC practices are not good for customers as they might restrict one’s privateness, the KuCoin CEO believes that such insurance policies are extra helpful than not, as they enhance the safety of customers’ funds.
“KYC is aimed to guard the property of the public and to make sure that property are protected on two totally different ranges,” Lyu stated, including:
“The primary degree is possession, so you recognize that the cash is yours. And the second degree is which you can truly observe your property in the case of theft. So in case you misplaced your property, we’ll be capable of observe the supply and ensure the supply is clear.”
The cryptocurrency business might be more and more interacting with the bodily world, which is why compliance is vital, the KuCoin CEO went on to say.
“So in essence, in the entire improvement cycle of crypto, I might say that KYC, it is a stage that is inevitable, and it is very wholesome as effectively,” Lyu added.
KuCoin formally introduced in late June that it could be introducing mandatory KYC checks for all new users on its platform ranging from July 15, 2023. With out finishing KYC, newly registered customers will not be capable of entry KuCoin’s services and products. At the similar time, present non-KYC customers will nonetheless be capable of commerce, however might be restricted from depositing new funds.
The brand new KYC restrictions at KuCoin are prone to have an effect on the platform’s buying and selling volumes in the quick time period, the CEO advised Cointelegraph.
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“We perceive that in the quick run, as the guidelines change into extra stringent and strict to sure prospects, some could depart,” Lyu stated. Nevertheless, KuCoin stays bullish on compliance on crypto exchanges in the long run, he added, stating:
“However in the long term, extra compliant funds and customers will enter this business in the future, which is equal to opening the door for everybody higher and making customers safer.”
In accordance with KuCoin, the platform at the moment has 27 million customers, which is a 35% improve from the quantity of customers it had one 12 months in the past. Following the KYC improve announcement, KuCoin’s buying and selling volumes considerably edged up from round $540 million to greater than $660 million at the time of writing, according to information from CoinGecko.
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Cointelegraph by Helen Partz Privacy is not the core feature of Bitcoin — KuCoin CEO cointelegraph.com 2023-07-07 09:23:17
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