© Reuters.

Major crypto exchange Binance took a compliance-friendly approach to its business after years of a cat-and-mouse game with regulators around the world, and it worked surprisingly well in terms of user retention, according to a new interview with Binance CEO Changpeng Zhao.

Speaking to Bloomberg News, Zhao noted that Binance made Know Your Customer (KYC) processes mandatory “for global users, for every feature” in a bid to attract new users as a regulatory-compliant business. He revealed that Binance lost about 3% of the users after making KYC obligatory.