bitcoin was not created for privacy

Bitcoin price news
Bitcoin price news

Privacy is not the most important feature of the first cryptocurrency. This opinion was expressed by KuCoin CEO Johnny Liu in an interview with Cointelegraph.

“When it comes to the purpose of creating bitcoin, I think that privacy is just one of its options,” he said.

According to Liu, a key advantage of digital gold is its role as a medium of exchange that allows holders to hedge the risks of an economic recession.

KuCoin CEO recalled that the cryptocurrency was created after the global financial crisis of 2008, provoked by the collapse of the subprime mortgage market in the United States.

“These events led to the birth of Bitcoin,” Liu said.

In June, KuCoin announced new user verification rules. The head of the exchange noted that the procedures KYC provide more value to users than threaten privacy. According to him, such a policy provides a two-level protection of assets.

“The first level is ownership, when you know for sure that this money is yours. Second, you can track assets in case of theft. If you lose funds, we will be able to find out the source,” Liu said.

The cryptocurrency industry will be forced to implement compliance practices as it expands interaction with the physical world, he is sure.

“So in essence, for the entire cryptocurrency development cycle, I would say that KYC is a stage that is inevitable, and it is also very useful,” the head of KuCoin expressed confidence.

He suggested that the platform will lose a certain number of users due to the tightening of verification rules. However, this impact will be short-lived, Liu said.

“In the long term, the industry will see more compliant funds and participants enter the industry, which is the equivalent of opening doors to everyone and improving user safety,” concluded the CEO of the exchange.

According to KuCoin, the platform’s client base is 27 million accounts. The indicator for the year increased by 35%.

Recall that in August 2021, the world’s largest crypto exchange Binance introduced mandatory user verification. A year later, the company admitted that due to the introduction of KYC procedures, they lost “about 90% of customers and billions of dollars of income.”

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