CZ questions how X would handle KYC compliance if it becomes a financial platform

Source: CryptoNewsNet Original Title: Changpeng Zhao questions how X would handle KYC if it becomes a financial platform Original Link:

Background

During an AMA on January 14, CZ expressed concerns about how X (formerly Twitter, now owned by Elon Musk) would handle KYC when expanding platform financial features.

This contradicts Musk’s vision of transforming X into a “super app,” which includes messaging, trading, investing, and other financial services.

Changpeng shared his views on this topic, raised important questions, and emphasized potential reasons that could complicate this effort.

How does CZ view X becoming a financial platform?

During the AMA, CZ shared his thoughts on the possibility of X launching on-chain trading and handling KYC (if extended to crypto trading).

CZ pointed out potential challenges X might face in user identification, noting that platforms like major exchanges rely heavily on strict KYC measures to comply with regulations and prevent money laundering.

Observers have noted in recent days that since this topic started circulating, X remains just a social media platform, and implementing robust KYC would face significant hurdles.

These obstacles are mainly related to potential regulatory pressures, which could make seamless crypto trading difficult or risky, especially without proper verification processes.

Is crypto trading feasible on X?

Since Musk acquired the app in 2022, he has been contemplating turning X into a super app. He even shared this ambition on X at the time, claiming that Twitter’s acquisition would accelerate his goal of creating X as a super app.

Years later, he is now trying to fulfill this promise by venturing into the financial industry, enabling X to support crypto trading. The platform has become a hub for financial discussions, with X product lead Nikita Bier claiming X is the best source for financial news.

“Trillions of dollars are deployed based on what people read here,” Bier stated in an article. The biggest and most recent development on this topic is Bier’s announcement on January 11 that they are developing the upcoming Smart Cashtags feature.

This feature is designed to allow users to directly tag specific assets or smart contracts within X posts.

“We are building Smart Cashtags, which allow you to specify the exact asset when posting code,” Bier wrote. “From the timeline, users will be able to click on them to view real-time prices and all mentions of that asset. Our goal is to gather feedback during the iteration process for a public release next month.”

This update is expected to lay the foundation for X as it gradually becomes a hub that combines platform-internal financial data and conversations with real-time market intelligence.

Once launched, any user clicking on a cashtag will get real-time price and chart displays, relevant discussions, news, sentiment around the tag, and on-chain data for the token.

This will turn the X timeline into a powerful real-time market dashboard, potentially benefiting crypto traders and enthusiasts in the end. Some even speculate that this update will include buy and sell buttons, which could lead to in-app trading or redirection to partner platforms.