KuCoin CEO: Privacy Isn’t at the Core of Bitcoin
Amidst The CEO of KuCoin, who is preparing to introduce mandatory Know Your Customer Checks (KYC), argues that privacy is not the most important aspect of Bitcoin (BTC).
In an interview with AskFX on July 4, Johnny Lyu, CEO of KuCoin said, “Privacy is just one of the characteristics of Bitcoin when it comes to its purpose.”
Lyu explained that the main benefit of Bitcoin is not privacy, but rather a unit of currency that allows its holders to hedge against recessions. The CEO explained that Bitcoin was born after the 2008 financial crisis sparked by subprime mortgages in the United States. Lyu said that “these events led to the birth of Bitcoin.”
The KuCoin CEO believes that overly strict KYC policies are bad for users because they limit their privacy. However, he believes that these guidelines are better than nothing as they increase the safety of users’ funds.
Lyu added, “KYC aims to protect public assets and ensure that assets are properly protected at two levels.”
The first level is ownership. You know the money is yours. The second level allows you to track your assets in case of theft. If you lose your wealth we can trace the source to make sure it’s clean.
The CEO of KuCoin said that the cryptocurrency industry will increasingly interact with the physical world. Because of this, compliance was required.
“In essence, I would say that in the entire cryptocurrency development cycle, KYC is a phase that is inevitable and very healthy,” Lyu said.
KuCoin officially announced at the end of June that it will introduce mandatory KYC checks on its platform for all new users starting July 15, 2023. KuCoin products and services are not available to newly registered users who do not complete KYC. Existing non-KYC KuCoin users can continue trading but are not allowed to add new funds.
According to AskFX, KuCoin’s new KYC requirements will likely impact the platform’s trading volume in the short-term.
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“We recognize that some customers may decide to churn in the short term as the rules become stricter and more restrictive become. ” explained Lyu. However, KuCoin remains bullish on crypto exchange compliance in the long term, he said, adding:
“But in the long run, more compliant funds will enter the industry in the future. This amounts to opening up. “Creating a door for everyone and making users safer.
KuCoin states that the platform has 27 million active users. This is a 35% increase from the previous year. KuCoin trading volume has increased since the announcement of the KYC -Upgrades increased significantly, data from CoinGecko shows that volume has increased from $540 million in the past to over $660 million at the time of this writing
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