After adopting KYC, Binance, the largest cryptocurrency exchange, suffered a considerable income loss. Former cybercrime detectives from the US Internal Revenue Service, Tigran Gambaryan and Matthew Price, met with CoinDesk to let them know how the KYC regulations have impacted the company’s operations.
Gambaryan said that after adopting KYC, they had to deal with a large 90 percent client attrition, which cost them billions in income.
The move to reduce the Bitcoin withdrawal limits for non-KYC-compliant accounts to 0.06 BTC raises the question of whether this will result in a decrease in unlawful activities, according to the Binance compliance executive’s remarks.
According to these two former investigators, it may significantly alter the proportion of total transactions that are unlawful. The largest cryptocurrency is exponentially greater than its rivals, according to Gambaryan, one of the former investigators. Its trading volume has exceeded Coinbase Global Inc. and FTX, which had trading volumes of $1.3 billion and $1.2 billion respectively.
For a few years, the business and its CEO Changpeng Zhao (CZ) have dominated the headlines. The CZ filed a defamation case against the publication after Hong Kong-based Modern Media reproduced, according to a Bloomberg Businessweek story.
Three key members of the compliance team have disclosed all information about the story, including dealing with fraud, money laundering, financing of terrorism, and negative press. Recently, the market has seen a lot of Reuters reporting about Binance and its connection to illegal behavior. The most well-known cryptocurrency is becoming a center for illegal activities, the news site claims. Additionally, according to Reuters, Hydra has excellent ties to the biggest cryptocurrency’s user base. The swap will benefit Hydra with $780 million price associated with since 2017.
How do the former investigators Matthew Price and Tigran Gambaryan contribute to the decline in the market value
The value of important darknet markets significantly decreased because of these two former investigators. The two detectives from the American Internal Revenue Service’s cybercrime team who decreased the darknet value are AlphaBay, Silk Road, and Hydra. The exchange operates in several countries while not having an official headquarters. Recently, Chagri Poyraz was hired to serve as the new global head of sanctions compliance.
To clarify, CoinDesk resorted to Binance for the verification of Reuters’ assertions. Gambaryan, Price, and Poyraz have had two lengthy chats. Many assertions were refuted, including the idea that Binance offers greater opportunities for money laundering than other exchanges. These seemed to be people who were complaining to the bartender in a tavern. It described journalists in derogatory terms. They spoke about the criminal underground and how it permeates the cryptocurrency market. They also demonstrated how they found well-known international cyber criminals in order to stop the flow of illegal money.