Privacy is not the core feature of Bitcoin, KuCoin CEO says

Amid KuCoin alternate getting ready to undertake obligatory Know Your Buyer (KYC) checks, the corporate’s CEO argued that privateness will not be a very powerful function of Bitcoin (BTC).

“Relating to the aim of Bitcoin creation, I believe privateness is only one of its options,” KuCoin CEO Johnny Lyu instructed Cointelegraph in an interview on July 4.

As an alternative of privateness, the core advantage of Bitcoin is a unit of alternate, which permits holders to hedge towards recessions, Lyu hinted. The CEO talked about that Bitcoin was created after the 2008 monetary disaster, which was triggered by the USA subprime mortgage disaster. “These occasions led to the beginning of Bitcoin,” Lyu famous.

Whereas some could imagine that overly strict KYC practices aren’t good for customers as they could 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 general public and to make sure that property are protected on two completely different ranges,” Lyu stated, including:

“The primary stage is possession, so you already know that the cash is yours. And the second stage is that you would be able to really observe your property within the case of theft. So if you happen to misplaced your property, we’ll be capable of observe the supply and ensure the supply is clear.”

The cryptocurrency business will probably be more and more interacting with the bodily world, which is why compliance is critical, KuCoin CEO went on to say.

“So in essence, in the entire growth cycle of crypto, I might say that KYC, it’s a stage that’s inevitable and it is vitally wholesome as properly,” Lyu added.

KuCoin formally introduced in late June that it will be introducing obligatory KYC checks for all new customers on its platform ranging from July 15, 2023. With out finishing KYC, newly registered customers won’t be able to entry KuCoin’s services and products. On the identical time, current non-KYC customers will nonetheless be capable of commerce, however will probably be restricted from depositing new funds.

The brand new KYC restrictions at KuCoin are more likely to have an effect on the platform’s buying and selling volumes within the quick time period, the CEO instructed Cointelegraph.

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“We perceive that within the quick run, as the principles develop into extra stringent and strict to sure prospects, some could go away,” Lyu stated. Nonetheless, 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 sooner or later, which is equal to opening the door for everybody higher and making customers safer.”

In response to KuCoin, the platform at the moment has 27 million customers, which is a 35% enhance from the variety of customers it had one yr 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 on the time of writing, in accordance with knowledge from CoinGecko.

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