2 November 2024
Binance.US CEO Points Out Problems With KYC
The pandemic and growing economic uncertainty is a time when cryptocurrencies are much needed but its technical and complex nature is the reason why many regulators are not ready to adopt it. The cryptocurrencies are decade old but crypto-market has been lauded for its innovation but has also been viewed as a potential threat that can finance terrorism and money laundering.
These doubts cause the regulators to ask exchanges to follow Know-Your-Customer [KYC] and AML processes. US is one of the countries carrying out mandatory KYC and AML processes, which is the main challenge considering the decentralized ethos of crypto. As per the Binance.US Chief Executive Officer [CEO], Catherine Coley, there is no freedom for users to experience crypto without KYC, it was something they had to do to “play by the rules to bend the metal a little bit.”
Although Binance itself is taking steps to spread the Bitcoin-freedom around the world, and especially in Africa. In the previous year, the continent has been educated about cryptocurrency and its use. Binance CEO, Changpeng Zhao said that he sees the African market as a key market but for a large number of unbanked Africans the KYC requirement was a hurdle concerning crypto adoption.
In the podcast, Coley stated,
“Bitcoin’s really only accessible to people with the internet. So we’re already leaving out a huge chunk of humans anyways. Then to make sure you’ve got to go through KYC that really means you have to have a bank account. That also means you probably have to have your name on a lease or a utility bill. Do you know how many women out there don’t have their names on utility bills or leases? Does that mean they can’t access crypto?”
This issue is not only faced by developed countries but in developing countries as well.
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