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

Amid KuCoin speech preparing to follow mandatory Know Your Customer (KYC) checks, the company’s CEO argued that privateness is not the astir important diagnostic of Bitcoin (BTC).

“When it comes to the intent of Bitcoin creation, I deliberation privateness is conscionable 1 of its features,” KuCoin CEO Johnny Lyu told Cointelegraph successful an interrogation connected July 4.

Instead of privacy, the halfway payment of Bitcoin is simply a portion of exchange, which allows holders to hedge against recessions, Lyu hinted. The CEO mentioned that Bitcoin was created aft the 2008 fiscal crisis, which was triggered by the United States subprime owe crisis. “These events led to the commencement of Bitcoin,” Lyu noted.

While immoderate whitethorn judge that overly strict KYC practices are not bully for users arsenic they whitethorn bounds one’s privacy, the KuCoin CEO believes that specified policies are much utile than not, arsenic they amended the information of users’ funds.

“KYC is aimed to support the assets of the nationalist and to guarantee that assets are protected connected 2 antithetic levels,” Lyu said, adding:

“The archetypal level is ownership, truthful you cognize that the wealth is yours. And the 2nd level is that you tin really way your assets successful the lawsuit of theft. So if you mislaid your assets, we’ll beryllium capable to way the root and marque definite the root is clean.”

The cryptocurrency manufacture volition beryllium progressively interacting with the carnal world, which is wherefore compliance is necessary, KuCoin CEO went connected to say.

“So successful essence, successful the full improvement rhythm of crypto, I would accidental that KYC, it is simply a signifier that is inevitable and it is precise steadfast arsenic well,” Lyu added.

KuCoin officially announced successful precocious June that it would beryllium introducing mandatory KYC checks for each caller users connected its level starting from July 15, 2023. Without completing KYC, recently registered users volition not beryllium capable to entree KuCoin’s products and services. At the aforesaid time, existing non-KYC users volition inactive beryllium capable to trade, but volition beryllium restricted from depositing caller funds.

The caller KYC restrictions astatine KuCoin are apt to impact the platform’s trading volumes successful the abbreviated term, the CEO told Cointelegraph.

Related: Bitcoin nary longer crypto of prime for illicit crypto activity: TRM Labs

“We recognize that successful the abbreviated run, arsenic the rules go much stringent and strict to definite customers, immoderate whitethorn leave,” Lyu said. However, KuCoin remains bullish connected compliance connected crypto exchanges successful the agelong term, helium added, stating:

“But successful the agelong run, much compliant funds and users volition participate this manufacture successful the future, which is equivalent to opening the doorway for everyone amended and making users much secure.”

According to KuCoin, the level presently has 27 cardinal users, which is simply a 35% summation from the fig of users it had 1 twelvemonth ago. Following the KYC upgrade announcement, KuCoin’s trading volumes importantly edged up from astir $540 cardinal to much than $660 cardinal astatine the clip of writing, according to information from CoinGecko.

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