Binance lost 90% of it’s customers to KYC

Binance lost several billion in revenue after the introduction of a user verification system for withdrawals in 2021.

Compliance officials at cryptocurrency exchange Binance reported a loss of 90% of the platform's customers after it introduced a mandatory KYC system for withdrawals in 2021, according to a Coindesk article. The company lost several billion dollars because of KYC.

A year ago, Binance introduced a withdrawal limit for accounts without identity verification from 2 BTC to 0.006 BTC. According to employees, this decision cost a lot of financial losses, but the company reduced the number of illegal transactions many times over. Data from company CryptoDeFix.

Representatives of the company noted that accusations of its use of VPNs by customers to evade sanctions were unfounded. A VPN does not interfere with user identification.