Unlike traditional investment markets, crypto doesn’t take a rest. Every day there is more and more news coming from this field. Some of it is good, some not so good.
With respect to the latter, Binance and its CEO have now been cast into the spotlight. As the world’s largest crypto exchange, it has opened its arms to regulations. And while that may be good for the market, several problems have arisen.
What Is Binance?
In 2017, Binance Exchange was born in Hong Kong. When launched, its main focus was on altcoin trading. It gained much of its popularity thanks to the large number of assets it allows to trade.
They are primarily known for their crypto-to-crypto trading and their lower transaction fees.
In recent months, Binance has been the subject of increased regulatory scrutiny. The truth is, crypto is growing faster than ever and governments are trying to regulate it.
Many countries have rejected the idea of using Binance and allowing their operations. For example, Binance is banned in the U.K. due to failing to meet the country’s anti-money laundering requirements.
They are also not authorized in Japan and Canada. And as of Friday morning, they announced they will stop offering its futures and derivatives in Germany, Italy, and the Netherlands. And we can only wait for more European countries to join this list.
If Binance wants to keep being a leader in this crypto world, they have to start making plans. They have to check their current situation to find a solution to all of these huge problems around them.
CZ’s Plan to Turn Around Everything
Binance CEO Changpeng Zhao who is the face of the company has said recently he’s willing to step down if that means Binance becoming a regulated institution.
CZ said in a virtual press conference on July 27th that he is open and willing to find a new CEO with more regulatory experience for Binance. But he will step down only if necessary. As of now, he is not going to resign.
Binance is seeking to open different regional headquarters around the world, looking for licenses wherever they are accessible. They plan to become the first cryptocurrency platform to be fully regulated.
Nonetheless, some of the decisions they have taken appear controversial. Some generated dissatisfaction and unhappiness among their exchange users.
The Users’ Storm: The Backlash
Recently, they made public their decision to establish new withdrawal limits. This, they say, will help keep Binance users safe as well as help to support their security. Those with a Basic Account Verification are allowed to withdraw only 0.06 BTC ( which at the time of this writing is around $2,300). This measure will also be implemented for existing users in the coming months.
Those wanting higher withdrawal amounts have been asked to complete the Know-Your-Customer (KYC) process. As expected, user complaints did not take long to arrive. Many indicated that 0.06 BTC was too little for a withdrawal limit. Others feel like crypto shouldn’t have KYCs, which at this moment can be kind of delusional.
They also announced earlier this month that it would no longer provide “stock tokens”. They will stop offering digital versions of these shares to focus on other goods.
So far the future looks somewhat unclear for Binance. Many are claiming it is the beginning of the end, wondering if all of this will be the downfall of Binance?
Many industry experts believe that this is unlikely. The truth is Binance is taking the steps it needs to take to be a recognized financial institution.
The year is not over yet we are likely to see many more changes in the cryptocurrency business. Binance will undoubtedly play a major role in this.