Recently, the crypto platform KuCoin announced that it will subject its users to the KYC identification procedure. An approach considered by many users to be an intrusion into their privacy. The head of KuCoin stepped up to explain the merits of this decision and its challenges.
KuCoin wants to further protect users through KYC
Soon, the crypto company KuCoin will require its new users to comply with Know Your Customer (KYC) identification standards. The company had announced its decision towards the end of June.
Obviously, the news, which does not spare former KuCoin users either, is poorly received. Indeed, many see this approach as a means of forcing users to give access to their privacy.
Aware of this reluctance, Johnny Lyu, the CEO of KuCoin, wanted to clarify the issues that underlie this choice. The latter would be motivated by KuCoin’s desire to protect the users of its platform.
It would be for the latter to protect its customers from acts of theft or crypto hacking. If necessary, the company also wants to ensure that they recover their assets more easily.
“[La procédure, Ndlr]KYC aims to protect the assets of the public and to ensure that these are protected on two different levels. The first level is ownership, so you know the money is yours. The second level is that of the traceability of goods in the event of theft. That way, if you’ve lost your assets, we’ll be able to trace the source and make sure it’s clean.”explained Johnny Lyu.
The manager went a little further in his explanations by taking the case of the Bitcoin blockchain. The latter, he says, has not only built confidentiality rules protecting the privacy of users.
The Bitcoin blockchain has remained vibrant due to its function as a unit of exchange. According to Lyu, it is this characteristic that makes it particularly relevant. Because it allows bitcoin holders to protect themselves from an economic recession.
The KYC procedure, essential now?
For the boss of KuCoin, the implementation of the KYC identification standard is no longer just a strategic choice. This approach has become “an inevitable and very healthy step”For “the entire development cycle of cryptos”.
The manager fears that some of his customers will be offloading KuCoin’s services. But this perspective is only valid in the short term. “But in the long term, more funds and compliant users will enter this industry in the future, which is equivalent to opening the door for everyone and making users safer”he pointed out.
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