Binance continues to be one of the leading trading platforms as its co-founder, Changpeng ‘CZ’ Zhao, noted that the platform had spent over $1 billion on compliance efforts with a high percentage of success.
Via a tweet on August 1, 2022, CZ mentioned that the company’s market share surged gradually despite the expenses incurred on compliance.
CZ Binance tweeted:
“Just checked. Binance spent more than $1 billion on Compliance efforts, with a high % pass rate. It’s fine. Binance’s market share increased, not decreased. The blockchain & 3rd party data shows it.”
Binance Boss Calls Out CoinDesk For Misinterpretation
CZ also addressed the misleading headline from a prominent crypto media outlet, CoinDesk’s interview with Binance’s investigations team. The headline claimed that the exchange lost 90% of customers following the implementation of know-your-customer (KYC). Unfortunately, the headline had already spread online before CoinDesk realised and rectified the error.
The first headline says, “Binance Compliance Officer Says KYC Cost Exchange Billions in Revenue.” However, the loss of users was not from KYC but rather the anti-money-laundering (AML) measure of removing sanctioned accounts for failing to undergo KYC.
CZ stated on Twitter the media outlet was just trying to get more clicks with the headline, and the numbers speak for themselves.
A Binance spokesperson, speaking with Forkast in an email, also said:
“90% of users from one specific entity on our platform were lost after we offboarded that organisation for violating our terms of use,” adding that “those users represented less than 0.001% of our daily trading volume.”
Read more: Italy Welcomes Crypto.com Exchange After Binance and Coinbase.
