Binance and mandatory KYC is a stepping stone to growth.

Hello everyone...

Since more and more financial institutions or businesses began to appear, the need arose to establish a system capable of avoiding negative activities such as money laundering, terrorist financing, and other illicit financial activities, as well as to evaluate risk factors and that is why KYC was born. And nowadays it is something extremely necessary to open an account in a bank or to make operations in the market or rather for every aspect of daily life we need KYC. Many criticize this as a way to monitor every aspect of people's lives and others favor it as it helps to solve or avoid financial crimes.

In the cryptocurrency world, KYC is somewhat rejected as KYC invites centralization and the return of financial services monitored by entities or governments. For some years cryptocurrency services could work without KYC, as it was not mandatory to show your ID to buy bitcoin and store it in a wallet, and governments did not care about cryptocurrencies either as it was something temporary and was going to end.

But now, with a market capitalization of over $2 trillion, it is a giant that is hard to hide or eliminate, and the fact that it has grown so much also attracts the eyes of people looking to scam or steal other people's money through Rugs Pulls or other forms of fraud.

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Something that also had a huge growth was the Exchanges, places where people traded crypto and could sell it for fiat money. Of all of them, Binance is the most successful in the current market, outperforming others by billions. This sudden growth made governments scared and wanted to put a stop to this because to trade in Binance was not something mandatory KYC, and as it has a daily volume of billions, many governments think that in this way could be used to finance terrorism or money laundering.

Faced with the threat of Binance many governments of countries closed the doors to binance trading in their countries and imposed rules regarding legal financial services and one of the most agreed by the governments was the mandatory KYC for all who wanted to use the services of binance. Therefore, to continue to operate and maintain a legal and compliant service, Binance implemented a mandatory KYC for all users globally and for every function on August 20th of this year. The advantage of this is that it can attract new users as well as other institutions as it is a compliant company.

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Binance KYC can be somewhat contradictory since when it emerged in 2017 it was born with the idea of being a fully decentralized entity that did not have a head office in any country. Sure, the idea of imposing a KYC may alienate some the CEO of binance CZ mentioned that 3% of all users left the exchange after KYC was mandatory.

But as it has had a pretty big growth and has to be mandatorily established to keep growing it has adopted a new vision about their entity and the path they want to take from now on. So Binance and its KYC can bring a lot of very positive benefits to the company that is highly questioned for its policies.

An additional benefit that may go unnoticed, is that the implementation of KYC in Binance can bring a higher adoption, as one of the biggest fears of people is not knowing if they will lose their money or not and with the FUD that is printed daily, many are suspicious. So KYC can give more credibility to the company and in turn bring more people or businesses that can use binance services to buy or sell cryptocurrencies.

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