Jump to content

Binance

From Alfawiki

Binance is a trading platform where cryptocurrencies and derivatives can be traded. With a trading volume of over 60 billion US dollars per day, it is the largest cryptocurrency exchange.[1][2][3]

History

Binance was founded in 2017 by the Chinese-Canadian businessman Changpeng Zhao, a developer who had previously built high-frequency trading software. Co-founder was Yi He.[4] Binance was originally based in China, but later moved to Malta due to increasing cryptocurrency regulations in China.[5]

On October 28, 2020, Forbes staff published leaked documents alleging that Binance and Changpeng Zhao (also known as CZ) had created an elaborate corporate structure to deliberately deceive US regulators and secretly profit from cryptocurrency investors.[6]

In 2020, Binance expected revenue equivalent to 800–1000 million US dollars.[7]

In April and May 2021, the BaFin accused the operators of the German platform of violating the prospectus requirement.[8] In August 2021, the British financial regulator Financial Conduct Authority warned that Binance posed a significant risk to consumers.[9][10]

In November 2021, Binance, together with Animoca Brands, launched a $200 million fund for investments in Blockchain games startups.[11] In June 2022, Binance launched another $500 million fund for investments in "blockchain, Web3, and value-building technologies" startups.[12]

Due to the insolvency of competitor FTX, Binance published its exchange holdings as "Proof of Reserves" (PoR) in the following amounts: 475,000 BTC, 4,800,000 ETH, 17.6 billion USDT, 21.7 billion BUSD, 601 million USDC and 58,000,000 of its own BNB.[13] However, business journalists did not attribute any significance to this "Proof of Reserves" in mid-December 2022 – Binance had only had the credit side of its accounting checked, but nothing was disclosed about possible liabilities of the company.[14]

Products

Binance offers two types of markets. On the spot market, cryptocurrencies can be exchanged for others.[15] The derivative market offers the possibility to trade futures, options and other leveraged products of cryptocurrencies.[16]

It also allows purchased currencies to be stored and kept on Binance's servers (so-called "safe storage"). In addition, a large number of the coins and tokens traded there can be directly staked or otherwise invested via Binance.

Binance Coin (BNB) is Binance's own cryptocurrency, which incurs fewer fees for using Binance's services.[17]

In 2019, Binance then introduced the Binance Smart Chain, a parallel blockchain that allows the use of decentralized applications on the platform and uses BNB as the driving currency.[18]

At the beginning of 2021, 150 different cryptocurrencies were traded on Binance and, according to its own statements, an average of 1.4 million transactions per second were carried out.[19]

Since June 2021, Binance has offered its own NFT marketplace.[20]

Binance USD

Binance USD, or BUSD for short, is a Stablecoin pegged to the US dollar, issued by Binance in partnership with Paxos and approved and regulated by the New York State Department of Financial Services (NYDFS).

Controversies

The Commodity Futures Trading Commission (CFTC) has been investigating Binance since 2023 for allegedly serving US customers without a license. There is a company called Binance.US, which has a license from Binance to serve customers in the US. The companies claim to have no operational connections. However, both companies are owned by Changpeng Zhao. Binance tried to recruit Gary Gensler, former director of the CFTC under the Obama administration, as an advisor. They suspected that Gensler would regain an important position if the Democrats were to elect a president again.[21]

Furthermore, the company appears to be active in China, although Binance claimed in 2017 to be giving up its China business. Employees were told to remain silent about the China business. For example, employees are said to have been recruited for Shanghai. To cover up the trail in China, VPN access was used. When rumors of China activities surfaced in 2019, employees were instructed to say that they only had offices in Malta, Singapore and Uganda. When Binance was confronted with the allegations in 2023, Binance stated that "ancient stories" were being quoted and events were being misrepresented. In addition, authorities are having difficulty regulating the exchange. Binance emphasizes that it has no traditional headquarters. Instead, its headquarters are flexible and are always wherever founder Changpeng Zhao happens to be.[21]

In June 2023, the US Securities and Exchange Commission (SEC) filed charges on a total of 13 counts, accusing Binance, Changpeng Zhao, and several subsidiaries, among other things, of misappropriating investor funds and intentionally circumventing laws.[22] The crypto exchange Binance finally pleaded guilty in November 2023 and accepted a fine of 4.3 billion dollars (almost four billion euros).[23]

External links

References

  1. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  2. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  3. ↑ World’s Top-Ranked Crypto Exchange Adds 240,000 Users in One Hour, Bloomberg, January 11, 2018
  4. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  5. ↑ Why world leader crypto exchange Binance moved to Malta, Malta Today, February 22, 2019, accessed February 6, 2021
  6. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  7. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  8. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  9. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  10. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  11. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  12. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  13. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  14. ↑ Philipp Frohn: "Why the transparency offensive of crypto exchanges is useless" wiwo.de from December 13, 2022
  15. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  16. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  17. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  18. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  19. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  20. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  21. ↑ 21.0 21.1
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  22. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
  23. ↑
    1. REDIRECT Template:Cite web/German
    • From a page move: This is a redirect from a page that has been moved (renamed). This page was kept as a redirect to avoid breaking links, both internal and external, that may have been made to the old page name.
Retrieved from "https://www.alfawiki.org/index.php?title=Binance&oldid=9"