By 
KuCoin CEO, Johnny Lyu, emphasized that privacy is not the primary feature of Bitcoin, as the exchange prepares to implement mandatory Know Your Customer (KYC) checks. In an interview, Lyu stated that while privacy is one aspect of Bitcoin, its core benefit lies in serving as a unit of exchange and a hedge against recessions.
Lyu highlighted that Bitcoin was created in response to the 2008 financial crisis, which was triggered by the subprime mortgage crisis in the United States. He explained that the purpose of Bitcoin’s creation was to address the issues arising from that crisis.
Regarding KYC practices, some may argue that strict measures limit user privacy. However, Lyu believes that KYC policies are crucial for improving the security of user funds. He emphasized that KYC helps protect assets on two levels: confirming ownership and enabling asset tracking in the event of theft.
Lyu further expressed the view that compliance and KYC measures are necessary as the cryptocurrency industry interacts more with the physical world. He stated that KYC is an inevitable stage in the development cycle of crypto and is ultimately beneficial for the industry.
KuCoin recently announced that it would be implementing mandatory KYC checks for all new users starting from July 15, 2023. Non-KYC users will still be able to trade but will face restrictions on depositing new funds. While this may affect trading volumes in the short term, Lyu remains optimistic about the long-term benefits of compliance, expecting more compliant funds and users to enter the industry, which would enhance security for all participants.
According to KuCoin, the platform currently serves 27 million users, experiencing a 35% increase compared to one year ago. Following the announcement of the KYC upgrade, KuCoin’s trading volumes have shown a significant increase from around $540 million to over $660 million at the time of writing, as reported by CoinGecko.
Comments