KuCoin CEO Asserts Privacy is Not the Primary Feature of Bitcoin

Lyu shared his perspective in an interview on July 4, stating that while privacy is one of Bitcoin’s features, its core benefit lies in serving as a unit of exchange that allows individuals to hedge against recessions. He highlighted that Bitcoin was created in response to the 2008 financial crisis, which was triggered by the subprime mortgage crisis in the United States. Lyu emphasized that these events led to the birth of Bitcoin.

While some may view stringent KYC practices as limiting privacy, the KuCoin CEO believes that such policies are essential to enhance the security of users’ funds. He explained that KYC aims to protect assets on two levels: ensuring ownership and enabling asset tracking in the event of theft. By tracking the source of lost assets, the platform can ensure their legitimacy.

Lyu further expressed that as the cryptocurrency industry increasingly interacts with the physical world, compliance becomes necessary. He described KYC as an inevitable and healthy stage in the development cycle of crypto.

In late June, KuCoin officially announced the introduction of mandatory KYC checks for all new users starting from July 15, 2023. New users who do not complete KYC will be unable to access KuCoin’s products and services. Existing users who have not completed KYC will still be able to trade but will face restrictions on depositing new funds.

Lyu acknowledged that the new KYC requirements may have a short-term impact on trading volumes, with some customers potentially leaving due to the stricter rules. However, he expressed optimism about compliance on crypto exchanges in the long term, anticipating an influx of compliant funds and users who will contribute to a more secure industry.

KuCoin currently boasts 27 million users, representing a 35% increase compared to the previous year. Following the announcement of the KYC upgrades, KuCoin’s trading volumes saw a notable increase from approximately $540 million to over $660 million at the time of writing, according to CoinGecko data.

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