Difference between revisions of "Binance"

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| location =      Malta
 
| location =      Malta
 
| employees =      300
 
| employees =      300
| products =      Cryptocurrency exchange
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| products =      Cryptocurrency trading platform
 
| twitter =        Binance
 
| twitter =        Binance
 
| linkedin =      binance
 
| linkedin =      binance
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Binance Exchange ("Binance") is a crypto-to-crypto [[exchange]] launched in July 2017.<ref>{{cite web|url=https://www.bloomberg.com/news/articles/2018-04-20/crypto-exchange-binance-denies-it-will-introduce-dollar-trading|name=Crypto Exchange Binance Denies It Will Introduce Dollar Trading|org=Bloomberg|date=May 6, 2018}}</ref>
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Binance Exchange ("Binance") is a [[cryptocurrency]]-to-cryptocurrency trading [[platform]] launched in July 2017.<ref>{{cite web|url=https://www.bloomberg.com/news/articles/2018-04-20/crypto-exchange-binance-denies-it-will-introduce-dollar-trading|name=Crypto Exchange Binance Denies It Will Introduce Dollar Trading|org=Bloomberg|date=May 6, 2018}}</ref>
  
 
== Company Overview ==  
 
== Company Overview ==  
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Binance's operations were launched with the issuance of 200 million Binance Coins in July 2017, which raised about $15 million.<ref>{{cite web|url=https://www.forbes.com/sites/pamelaambler/2018/02/07/changpeng-zhao-binance-exchange-crypto-cryptocurrency/#5074b8501eee|name=From Zero To Crypto Billionaire In Under A Year: Meet The Founder Of Binance|org=Forbes|date=May 7, 2018}}</ref>     
 
Binance's operations were launched with the issuance of 200 million Binance Coins in July 2017, which raised about $15 million.<ref>{{cite web|url=https://www.forbes.com/sites/pamelaambler/2018/02/07/changpeng-zhao-binance-exchange-crypto-cryptocurrency/#5074b8501eee|name=From Zero To Crypto Billionaire In Under A Year: Meet The Founder Of Binance|org=Forbes|date=May 7, 2018}}</ref>     
  
Binance has had a series of domiciles, starting with China and followed by Japan and then Taiwan.
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Binance has had a series of domiciles, starting with China and followed by Japan and then Taiwan.  
  
In February 2018, Binance announced that it would establish a fiat-to-cryptocurrency exchange to be headquartered in Malta, giving it a principal address in the European Union. <ref>{{cite web|url=https://www.bloomberg.com/news/articles/2018-03-23/the-world-s-biggest-cryptocurrency-exchange-is-moving-to-malta|name=World's Biggest Cryptocurrency Exchange Is Heading to Malta|org=Bloomberg|date=May 7, 2018}}</ref> In October 2018, CEO Zhao told reporters that Binance would open as many as ten new fiat-to-crypto exchanges over the next year. Zhao plans for them to be geographically dispersed.<ref>{{cite web|url=https://www.coindesk.com/binance-reveals-plan-to-launch-crypto-exchanges-on-almost-every-continent|name=Binance Reveals Plan to Launch Crypto Exchanges on Almost Every Continent|org=Coindesk|date=December 11, 2018}}</ref> Later that same month, Vertex Ventures China and Vertex Ventures Southeast Asia & India announced that they had invested in Binance to facilitate the establishment of a Binance Singapore. Vertex Ventures, the parent of Vertex Ventures China and Vertex Ventures Southeast Asia & India, is an investment fund affiliated with Temasek Holdings, which is owned by the government of Singapore.<ref>{{cite web|url=https://www.coindesk.com/singapores-sovereign-fund-venture-wing-invests-in-binance|name=Binance Secures New Funding From Vertex Ventures|org=Coindesk|date=December 11, 2018}}</ref>
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In February 2018, Binance announced that it would establish a fiat-to-cryptocurrency exchange to be headquartered in Malta, giving it a principal address in the European Union.<ref>{{cite web|url=https://www.bloomberg.com/news/articles/2018-03-23/the-world-s-biggest-cryptocurrency-exchange-is-moving-to-malta|name=World's Biggest Cryptocurrency Exchange Is Heading to Malta|org=Bloomberg|date=May 7, 2018}}</ref> In October 2018, CEO [[Changpeng Zhao]] told reporters that Binance would open as many as ten new fiat-to-cryptocurrency exchanges over the next year. Zhao plans for them to be geographically dispersed.<ref>{{cite web|url=https://www.coindesk.com/binance-reveals-plan-to-launch-crypto-exchanges-on-almost-every-continent|name=Binance Reveals Plan to Launch Crypto Exchanges on Almost Every Continent|org=Coindesk|date=December 11, 2018}}</ref> Later that same month, Vertex Ventures China and Vertex Ventures Southeast Asia & India announced that they had invested in Binance to facilitate the establishment of a Binance Singapore. Vertex Ventures, the parent of Vertex Ventures China and Vertex Ventures Southeast Asia & India, is an investment fund affiliated with Temasek Holdings, which is owned by the government of Singapore.<ref>{{cite web|url=https://www.coindesk.com/singapores-sovereign-fund-venture-wing-invests-in-binance|name=Binance Secures New Funding From Vertex Ventures|org=Coindesk|date=December 11, 2018}}</ref>
  
=== Security ===
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In August 2019, Zhao said in an interview with Cheddar.com that he estimated Binance would open a U.S. branch "within a month or two." According to him, the U.S. branch of the platform would be led by BAM Trading Services, a little-known firm.<ref>{{cite web|url=https://cointelegraph.com/news/binance-to-launch-us-platform-soon-helped-by-a-little-known-partner|name=Binance to Launch US Platform Soon, Helped by a Little-Known Partner|org=Cointelegraph|date=August 23, 2018}}</ref>
  
Binance's reputation for safety and reliability was threatened by an apparently unsuccessful hacking attempt to obtain customer funds held on the exchange on March 7, 2018.<ref>{{cite web|url=https://cointelegraph.com/news/possible-hack-of-third-party-tools-affects-binance-exchange-users|name=Possible Hack Of Third-Party Tools Affects Binance Exchange Users|org=Cointelegraph|date=May 7, 2018}}</ref> Binance acknowledged the attempt and, in an incident report the next day, stated that all funds were safe.<ref>{{cite web|url=https://support.binance.com/hc/en-us/articles/360001547431-Summary-of-the-Phishing-and-Attempted-Stealing-Incident-on-Binance|name=Summary of the Phishing and Attempted Stealing Incident on Binance|org=Binance|date=May 7, 2018}}</ref>  On March 12, 2017 it announced that it was offering a crypto equivalent of $250,000 bounty for the arrest of any person involved in the "large-scale, organized effort."<ref>{{cite web|url=https://support.binance.com/hc/en-us/articles/360001615252-Binance-Hacker-Bounty|name=Binance Hacker Bounty|org=Binance|date=May 7, 2018}}</ref>
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In its first known investment in mainland China since leaving the country, Binance participated in a funding round for a website called Mars Finance. Mars Finance publishes cryptocurrency data.<ref>{{cite web|url=https://www.bloomberg.com/news/articles/2019-09-17/binance-s-first-strategic-chinese-investment-is-a-coindesk-rival|name=Binance’s First Strategic Chinese Investment is a CoinDesk Rival|org=Bloomberg|date=September 17, 2019}}</ref>
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=== Hacking attack, "SAFU" fund ===
  
In a move to support institutional business, Binance announced on December 6, 2018, that it is offering subaccounts for its corporate and higher level VIP accounts. The new feature enables the master account to set distinct limits for each of its subaccounts. <ref>{{cite web|url=https://coingeek.com/binance-launches-sub-accounts-to-service-institutional-investors/|name=Binance launches sub-accounts to service institutional investors|org=CoinGeek|date=December 10, 2018}}</ref>
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In May 2019, Binance sustained a hacking attack that caused over $40 million worth of [[digital assets]] to be stolen from the company's hot [[wallets]]. Despite the high number of bitcoins that were stolen in this attack (7,000 BTC), Binance said in a statement that only 2 percent of the company's total bitcoin holdings were being held in the wallets. The statement also described the attack as "well-orchestrated" between "multiple seemingly independent accounts at the most opportune time." The hackers, who stole the 7000 BTC in a single transaction, triggered a total shutdown of all client withdrawals from the exchange through Binance's security measures. Zhao said over Twitter that the stolen funds would be covered by the "SAFU fund," or the Secure asset Fund for Users - an emergency fund held by Binance in order to cover lost or stolen funds from its customers.<ref>{{cite web|url=https://finance.yahoo.com/news/binance-hacked-more-40-million-100055952.html|name=Binance hacked: More than $40 million stolen in ‘large-scale security breach’|org=Coin Rivet via Yahoo Finance|date=May 13, 2019}}</ref><ref>{{cite web|url=https://www.binance.com/en/support/articles/360028031711-Binance-Security-Breach-Update|name=Binance Security Breach Update|org=Binance|date=May 13, 2019}}</ref>
  
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On Sunday, May 12, Zhao announced that deposits and withdrawals on the Binance exchange would be scheduled to resume on Tuesday, May 14th.<ref>{{cite web|url=https://www.coindesk.com/hacked-crypto-exchange-binance-to-resume-deposits-and-withdrawals-on-tuesday|name=Hacked Crypto Exchange Binance to Resume Deposits and Withdrawals on Tuesday|org=Coindesk|date=May 13, 2019}}</ref>
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=== Involvement with Libra ===
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In June 2019, several financial news outlets reported that Binance had begun the process of potentially becoming a [[node]] with [[Facebook]]'s [[Libra]] project. FinanceMagnates reported that it had spoken to Binance's CSO, Gin Chao, at a [[fintech]] event in Tel Aviv, Israel. Chao said that "early discussions have taken place" with Facebook over a possible future listing of the Libra token. Chao said that although the token will be on a private blockchain at first, Facebook ultimately may desire a secondary market for the token.<ref>{{cite web|url=https://www.coindesk.com/binance-talking-to-facebook-about-libra-listing-becoming-node-reports?utm_source=twitter&utm_medium=coindesk&utm_term=&utm_content=&utm_campaign=Organic|name=Binance Talking to Facebook About Libra Listing: Reports|org=Coindesk|date=June 28, 2019}}</ref><ref>{{cite web|url=https://www.financemagnates.com/cryptocurrency/exchange/exclusive-binance-in-talks-with-facebook-over-libra/|name=Exclusive: Binance in Talks with Facebook Over Libra|org=FinanceMagnates|date=June 28, 2019}}</ref>
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=== U.S. Customers ===
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In a June 14, 2019, announcement about its updated "terms of use" Binance said that as of September it would no longer provide services to U.S. business or retail customers.<ref>{{cite web|url=https://cointelegraph.com/news/binance-to-stop-serving-us-traders-following-announcement-of-us-dedicated-platform|name=Binance to Stop Serving US Traders Following Announcement of US-Dedicated Platform|org=CoinTelegraph|date=July 11, 2019}}</ref> On the previous day, Binance had revealed in a blog post that it had partnered with BAM Trading Services to prepare to launch a U.S. dedicated service, Binance US. The post said that Binance was licensing its trading platform as well as its wallet technologies to BAM. BAM received a [[FinCEN]] registration on June 11 according to Binance.<ref>{{cite web|url=https://www.binance.com/en/blog/346119082624540672/Binance-Announces-Partnership-with-BAM-to-Launch-US-Exchange|name=Binance Announces Partnership with BAM to Launch US Exchange|org=Binance|date=July 11, 2019}}</ref>
 
== Products and Services ==  
 
== Products and Services ==  
  
=== Cryptocurrency Exchange ===
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=== Cryptocurrency Trading Platform ===
  
 
With a reputation for reliable technology as well as low trading fees, Binance frequently ranked No. 1 on Coinmarketcap.com’s list of exchanges during 2018.<ref>{{cite web|url=https://www.bloomberg.com/news/articles/2018-03-28/crypto-s-billionaire-trading-king-has-suddenly-run-into-problems|name=How a Billionaire Crypto King Built the No. 1 Exchange in Just 8 Months|org=Bloomberg|date=May 7, 2018}}</ref><ref>{{cite web|url=https://www.bloomberg.com/news/articles/2018-04-20/crypto-exchange-binance-denies-it-will-introduce-dollar-trading|name=Crypto Exchange Binance Denies It Will Introduce Dollar Trading|org=Bloomberg|date=May 6, 2018}}</ref> The company has been criticized, however, for having few user verification controls and some of the industry's least rigorous “know-your-customer” policies. Users need only an email address to open Binance trading accounts with daily withdrawal limits equivalent to two [[bitcoins]].<ref>{{cite web|url=https://www.bloomberg.com/news/articles/2018-03-28/crypto-s-billionaire-trading-king-has-suddenly-run-into-problems|name=How a Billionaire Crypto King Built the No. 1 Exchange in Just 8 Months|org=Bloomberg|date=May 7, 2018}}</ref> Hong Kong’s Securities and Futures Commission has issued warnings to Binance, along with several of its peers, telling the exchanges to refrain from trading cryptocurrencies that qualify as securities.
 
With a reputation for reliable technology as well as low trading fees, Binance frequently ranked No. 1 on Coinmarketcap.com’s list of exchanges during 2018.<ref>{{cite web|url=https://www.bloomberg.com/news/articles/2018-03-28/crypto-s-billionaire-trading-king-has-suddenly-run-into-problems|name=How a Billionaire Crypto King Built the No. 1 Exchange in Just 8 Months|org=Bloomberg|date=May 7, 2018}}</ref><ref>{{cite web|url=https://www.bloomberg.com/news/articles/2018-04-20/crypto-exchange-binance-denies-it-will-introduce-dollar-trading|name=Crypto Exchange Binance Denies It Will Introduce Dollar Trading|org=Bloomberg|date=May 6, 2018}}</ref> The company has been criticized, however, for having few user verification controls and some of the industry's least rigorous “know-your-customer” policies. Users need only an email address to open Binance trading accounts with daily withdrawal limits equivalent to two [[bitcoins]].<ref>{{cite web|url=https://www.bloomberg.com/news/articles/2018-03-28/crypto-s-billionaire-trading-king-has-suddenly-run-into-problems|name=How a Billionaire Crypto King Built the No. 1 Exchange in Just 8 Months|org=Bloomberg|date=May 7, 2018}}</ref> Hong Kong’s Securities and Futures Commission has issued warnings to Binance, along with several of its peers, telling the exchanges to refrain from trading cryptocurrencies that qualify as securities.
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Binance announced in January 2019 that it had partnered with Simplex, an Israel-based payment processing firm, to create a way for Binance customers to buy cryptocurrencies with credit cards. According to the exchange, some countries will be excluded from this, including Iraq, Cuba Afghanistan and Libya. In addition to this, six U.S. states would also be excluded: New York, Connecticut, Hawaii, Georgia, New Mexico and Washington.<ref>{{cite web|url=https://www.coindesk.com/binance-users-can-now-pay-for-crypto-with-credit-cards|name=Binance Users Can Now Pay for Crypto With Credit Cards|org=Coindesk|date=January 31, 2019}}</ref>
 
Binance announced in January 2019 that it had partnered with Simplex, an Israel-based payment processing firm, to create a way for Binance customers to buy cryptocurrencies with credit cards. According to the exchange, some countries will be excluded from this, including Iraq, Cuba Afghanistan and Libya. In addition to this, six U.S. states would also be excluded: New York, Connecticut, Hawaii, Georgia, New Mexico and Washington.<ref>{{cite web|url=https://www.coindesk.com/binance-users-can-now-pay-for-crypto-with-credit-cards|name=Binance Users Can Now Pay for Crypto With Credit Cards|org=Coindesk|date=January 31, 2019}}</ref>
  
==== Decentralized (DEX) Exchange ====
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In April 2019, Binance launched trading services in Singapore, though it only had one trading pair: Singapore dollars (SGD) and bitcoin (SGD/BTC). Binance CFO Wei Zhou said that more pairs would be added over time as allowed by Singaporean regulations.<ref>{{cite web|url=https://www.coindesk.com/binance-users-can-now-pay-for-crypto-with-credit-cards|name=Binance Singapore Launches But Offers Just One Trading Pair, Report|org=Cointelegraph|date=April 25, 2019}}</ref>
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In June 2019, Binance announced that it was in the process of reviewing user accounts to ensure the compliance of the exchange's terms of use and know-your-customer procedures. On June 13, Binance announced that it would be formally expanding to the U.S. via a dedicated U.S.-only platform. On June 14, there was an announcement on Binance.com that the exchange had updated its terms of use agreement, stating that, "Binance is unable to provide services to any U.S. person," and that effective September 12, 2019, "users who are not in accordance with Binance's Terms of Use will continue to have access to their wallets and funds, but will no longer be able to trade or deposit on Binance.com."<ref>{{cite web|url=https://www.coindesk.com/binance-users-can-now-pay-for-crypto-with-credit-cards|name=Binance Singapore Launches But Offers Just One Trading Pair, Report|org=Cointelegraph|date=June 14, 2019}}</ref>
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In September 2019, Binance announced that it was planning to add the option to purchase cryptocurrency with fiat currency using its OTC trading platform within a month.<ref>{{cite web|url=https://www.coindesk.com/binance-to-add-fiat-to-crypto-otc-trading-in-a-month-co-founder-says|name=Binance to Add Fiat-to-Crypto OTC Trading in a Month, Co-Founder Says|org=Coindesk|date=September 19, 2019}}</ref>
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=== Binance Lite Australia ===
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In March 2019, Binance announced a new platform for Australian users that allows them to buy bitcoin with cash from 1300 newsstands across Australia. The service, called Binance Lite Australia, is a brokerage service that charges a 5 percent transaction fee, plus a goods and services tax (GST) on all bitcoin purchases. Binance said that it plans to offer other cryptocurrencies under this service in the future.<ref>{{cite web|url=https://www.coindesk.com/binance-launches-bitcoin-buying-at-over-1300-australian-stores?hootPostID=5de355f31eb095b3d5b3329b6160960b|name=Binance Now Lets Australians Buy Bitcoin With Cash at Over 1,300 Stores|org=Coindesk|date=March 20, 2019}}</ref><ref>{{cite web|url=https://www.binance.com/en/blog/314949990117445632/Binance-Goes-Down-Under-Launches-CashtoCrypto-Service-in-Australia|name=Binance Goes Down Under, Launches Cash-to-Crypto Service in Australia|org=Binance|date=March 20, 2019}}</ref>
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=== Margin Trading ===
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On July 11, 2019, Binance announced that it had introduced margin trading capability in its new platform, Binance 2.0, which launched that day. The contracts are perpetual and positions are closed out by transacting a contract opposite the original position. To use the service, a Binance customer transfers coins from his or her exchange wallet to a margin wallet. Once in the margin wallet, those coins can be used as collateral for borrowing additional coins. Binance provides frequently updated screens indicating the customer's current debt level, interest rate charged and risk level. Customers can trade their borrowed coins on the Binance exchange page,  as though they were their own. They then separately settle their debts by paying back the currency on the margin wallet screen. <ref>{{cite web|url=https://www.binance.vision/tutorials/binance-margin-trading-guide|name=Binance Margin Trading Guide|org=Binance|date=July 11, 2019}}</ref> In an August 26, 2019 article regarding Binance's new cryptocurrency lending program, CoinDesk reported that Binance's margin business charges borrowers of U.S. dollar-pegged Tether and Binance’s own BNB cryptocurrency annual interest rates as high as 10.0375% and 109% respectively.<ref>{{cite web|url=https://www.coindesk.com/binance-launches-crypto-lending-with-up-to-15-annualized-interest|name=Binance Launches Crypto Lending With Up to 15% Annual Interest|org=CoinDesk|date=August 27, 2019}}</ref>
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=== Binance Lending ===
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A new product, Binance Lending, was announced on August 26, 2019. Binance Lending customers were invited to lend Binance coin, Ethereum classic and Tether for 14 days at an annualized interest rate of 15%, 7%, and 10%, respectively.<ref>{{cite web|url=https://www.theblockcrypto.com/2019/08/26/binance-enters-into-crypto-lending-space-offers-interest-earning-opportunities-for-bnb-and-tether/|name=Binance enters into crypto lending space, offers interest-earning opportunities for BNB, ETC and Tether|org=The Block Crypto|date=August 27, 2019}}</ref> The loaning program was available for one day, August 28, and interest was payable from the 29th to September 11. Binance Lending capped total amounts it would borrow in each cryptocurrency on both a gross program basis and per individual customer basis. After the loan period, Binance Lending customers receive their deposited amount plus interest automatically credited to their Binance accounts.<ref>{{cite web|url=https://www.coindesk.com/binance-launches-crypto-lending-with-up-to-15-annualized-interest|name=Binance Launches Crypto Lending With Up to 15% Annual Interest|org=CoinDesk|date=August 27, 2019}}</ref>
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=== Derivatives ===
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In early September 2019, Binance announced that it had launched a test of two futures platforms dubbed Futures A and Futures B. The launch was accompanied by a contest among traders testing the two platforms. The contest rewarded active, not necessarily profitable, trading on the test platforms between September 3 and September 8. The purpose of the test was to obtain feedback on trader preferences between the platforms prior to the launch of actual trading.<ref>{{cite web|url=https://cointelegraph.com/news/binance-launches-2-futures-platforms-for-public-testing|name=Binance Launches $216,000 Futures Trading Contest on Testnet Platforms|org=CoinTelegraph|date=September 3, 2019}}</ref>
  
In addition to its more "traditional" crypto exchange, Binance has also developed its own decentralized, or "DEX" exchange. This platform, called Binance DEX, became publicly available for testing on February 20, 2019. Binance said its primary goal at this stage of the DEX's development was to gather public feedback, which would be used to develop a timeline for its final launch.<ref>{{cite web|url=https://www.coindesk.com/binance-launches-public-testing-for-decentralized-exchange|name=You Can Now Test Binance’s Decentralized Crypto Exchange|org=Coindesk|date=February 25, 2019}}</ref>
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On September 3, 2019 Binance announced that it had acquired a Seychelles-based cryptocurrency spot and derivatives trading platform called JEX, seemingly in a bid to compete better with CoinFLEX for Asian derivatives trading business.<ref>{{cite web|url=https://www.theblockcrypto.com/2019/09/02/binance-acquires-cryptocurrency-trading-platform/|name=Binance acquires crypto derivatives exchange to offer options, futures and perpetual contracts|org=The Block Crypto|date=September 3, 2019}}</ref>
  
 
=== Digital Token ===
 
=== Digital Token ===
  
Binance created its own [[cryptocurrency]], Binance Coin, which is a [[utility token]] that can be used to pay trading fees for transactions on the Binance exchange. The coin gives users a 50 percent discount on fees compared to any other cryptocurrency.<ref>{{cite web|url=https://www.forbes.com/sites/pamelaambler/2018/02/07/changpeng-zhao-binance-exchange-crypto-cryptocurrency/#5074b8501eee|name=From Zero To Crypto Billionaire In Under A Year: Meet The Founder Of Binance|org=Forbes|date=May 7, 2018}}</ref> In March 2019, the Ministry of Production and Labour in Argentina announced that, for every Argentinian blockchain project that receives funding from Binance Labs, the Ministry will match investments of up to $50,000 through LatamEX Founders Lab, its blockchain incubator program. This caused a significant increase to Binance Coin in price.<ref>{{cite web|url=https://www.forbes.com/sites/pamelaambler/2018/02/07/changpeng-zhao-binance-exchange-crypto-cryptocurrency/#5074b8501eee|name=Binance Coin (BNB) Price Analysis: What Pushed The Crypto Exchange’s Token to Number 7|org=Bitcoin Exchange Guide|date=March 8, 2019}}</ref>
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Binance created its own [[cryptocurrency]] on the Ethereum blockchain, Binance Coin, which is an ERC-20 [[utility token]] that can be used to pay trading fees for transactions on the Binance exchange. The coin gives users a 50 percent discount on fees compared to any other cryptocurrency used to pay fees.<ref>{{cite web|url=https://www.forbes.com/sites/pamelaambler/2018/02/07/changpeng-zhao-binance-exchange-crypto-cryptocurrency/#5074b8501eee|name=From Zero To Crypto Billionaire In Under A Year: Meet The Founder Of Binance|org=Forbes|date=May 7, 2018}}</ref>  
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In March 2019, the Ministry of Production and Labor in Argentina announced that, for every Argentinian blockchain project that receives funding from Binance Labs, the Ministry will match investments of up to $50,000 through LatamEX Founders Lab, its blockchain incubator program. This caused a significant increase to Binance Coin's price.<ref>{{cite web|url=https://www.forbes.com/sites/pamelaambler/2018/02/07/changpeng-zhao-binance-exchange-crypto-cryptocurrency/#5074b8501eee|name=Binance Coin (BNB) Price Analysis: What Pushed The Crypto Exchange’s Token to Number 7|org=Bitcoin Exchange Guide|date=March 8, 2019}}</ref>
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=== Binance Chain ===
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Binance developed its own blockchain, Binance Chain, which it launched in mid April 2019. Shortly thereafter it introduced athe Binance Chain Explorer and a [[wallet]].<ref>{{cite web|url=https://cointelegraph.com/news/binance-chain-launches-firm-expects-to-execute-mainnet-swap-on-april-23\|name=Binance Chain Launches, Firm Expects to Execute Mainnet Swap on April 23|org=CoinTelegraph|date=April 24, 2019}}</ref>
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BNB  was migrated to the new platform on April 23 and complies with the native Binance Chain standard, BEP-2.<ref>{{cite web|url=https://cointelegraph.com/news/binance-dex-launches-on-native-mainnet-earlier-than-planned-invites-community-input|name=Binance DEX Launches on Native Mainnet Earlier Than Planned, Invites Community Input|org=CoinTelegraph|date=April 24, 2019}}</ref>
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=== Decentralized Exchange (DEX)  ===
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In addition to its more "traditional" cryptocurrency trading platform, Binance also developed its own decentralized exchange, or "DEX." This [[platform]], called Binance DEX, became publicly available for testing on February 20, 2019. Binance said its primary goal at this stage of the DEX's development was to gather public feedback, which would be used to develop a timeline for its final launch.<ref>{{cite web|url=https://www.coindesk.com/binance-launches-public-testing-for-decentralized-exchange|name=You Can Now Test Binance’s Decentralized Crypto Exchange|org=Coindesk|date=February 25, 2019}}</ref>
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Binance announced on April 23 that it was testing the DEX platform on Binance Chain.<ref>{{cite web|url=https://cointelegraph.com/news/binance-dex-launches-on-native-mainnet-earlier-than-planned-invites-community-input|name=Binance DEX Launches on Native Mainnet Earlier Than Planned, Invites Community Input|org=CoinTelegraph|date=April 24}}</ref> On April 25, Binance officially launched its DEX, listing Binance Coin and Mithril (BNB/MITH) as its first trading pair.<ref>{{cite web|url=https://www.theblockcrypto.com/tiny/binance-dex-officially-launches-listing-mithril-as-the-first-pair/|name=Binance DEX officially launches, listing Mithril as the first pair|org=The Block|date=April 25}}</ref>
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In early June 2019, reports published by Cointelegraph claimed that Binance DEX was blocking website access to users based in 29 countries, though users in those countries could still access the DEX via some wallet apps. Changpeng Zhao suggested that users could use virtual private networks (VPNs) to bypass restrictions based on geographical location, despite this explicitly violating Binance DEX's terms of service. Binance began issuing a pop-up message to users attempting to access Binance.org from one of the blocked countries, which said that after July 1, 2019, "trading and accessing to the wallet interface" would no longer be available to users in those countries.
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The geoblocked countries include the USA, Albania, Belarus, Bosnia, Burma, the Central African Republic, Democratic Republic of Congo, South Korea, Cote D'Ivoire, the Crimean region of Ukraine, Croatia, Cuba, Herzegovina, Iran, Iraq, Kosovo, Lebanon, Liberia, Libya, Macedonia, Molodova, Serbia, Somalia, Sudan, South Sudan, Syria, Venezuela, Yemen, and Zimbabwe.<ref>{{cite web|url=https://finance.yahoo.com/news/binance-dex-navigating-country-specific-184500850.html|name=Binance DEX: Navigating Country-Specific Cryptocurrency Trading Restrictions|org=Cointelegraph via Yahoo Finance|date=June 10, 2019}}</ref>
  
 
=== Stablecoins ===
 
=== Stablecoins ===
 
 
During the fourth quarter of 2018 Binance added several fiat-based [[stablecoin]]s to its coin listing.<ref>{{cite web|url=https://cointelegraph.com/news/top-crypto-exchange-binance-adds-ripple-based-trading-pairs-in-new-expansion|name=Top Crypto Exchange Binance Adds Ripple-Based Trading Pairs in New Expansion|org=Cointelegraph|date=January 1, 2019}}</ref> Binance  
 
During the fourth quarter of 2018 Binance added several fiat-based [[stablecoin]]s to its coin listing.<ref>{{cite web|url=https://cointelegraph.com/news/top-crypto-exchange-binance-adds-ripple-based-trading-pairs-in-new-expansion|name=Top Crypto Exchange Binance Adds Ripple-Based Trading Pairs in New Expansion|org=Cointelegraph|date=January 1, 2019}}</ref> Binance  
 
also started using [[XRP]] ([[Ripple]]) as the quoting currency for some of its cryptocurrency pairs at the end of December.<ref>{{cite web|url=https://www.financemagnates.com/cryptocurrency/trading/ripple-surges-18-as-binance-uses-xrp-a-base-currency/|name=Ripple Surges 18% as Binance Uses XRP as Base Currency|org=Finance Magnates|date=January 1, 2019}}</ref>
 
also started using [[XRP]] ([[Ripple]]) as the quoting currency for some of its cryptocurrency pairs at the end of December.<ref>{{cite web|url=https://www.financemagnates.com/cryptocurrency/trading/ripple-surges-18-as-binance-uses-xrp-a-base-currency/|name=Ripple Surges 18% as Binance Uses XRP as Base Currency|org=Finance Magnates|date=January 1, 2019}}</ref>
 +
 +
Binance later announced that it would develop its own stablecoin, Venus, similar to [[Facebook]]'s [[Libra]]. In an interview published on August 29, Binance co-founder He Yi said that the company would learn from the mistakes of the Libra Association by engaging with regulators day one. He also said that Venus would be aimed at "non-Western" markets.<ref>{{cite web|url=https://cointelegraph.com/news/binance-venus-project-will-court-regulators-avoid-facebooks-mistakes|name=Binance: Venus Project Will Court Regulators, Avoid Facebook’s Mistakes|org=Cointelegraph|date=August 30, 2019}}</ref>
 +
 +
==== Binance USD ====
 +
 +
Stablecoin issuer [[Paxos]] and Binance announced on September 5, 2019, that Paxos would issue a [[New York State Department of Financial Services]]-approved U.S. dollar-backed stablecoin called Binance USD (BUSD). It is an [[ERC-20]], [[Ethereum]]-based token. It will be issued and redeemable on the Paxos platform, but it will trade against bitcoin, Binance Coin (BNB) and [[Ripple]] (XRP) on Binance.<ref>{{cite web|url=https://www.theblockcrypto.com/2019/09/05/binance-launching-its-own-usd-pegged-stablecoin-busd-with-paxos-as-custodian/|name=Binance launching its own USD-pegged stablecoin ‘BUSD,’ with Paxos as custodian|org=The Block Crypto|date=September 5, 2019}}</ref>
 +
 +
=== Binance X ===
 +
 +
On August 29, 2019, Binance announced Binance X, a new program dedicated to spurring greater research in [[open-source]] blockchain development. The announcement also said it was funding 40 developers conducting research into open-source cryptocurrency software.<ref>{{cite web|url=https://www.coindesk.com/binance-funds-40-developers-to-build-open-source-crypto-software?utm_source=twitter&utm_medium=coindesk&utm_term=&utm_content=&utm_campaign=Organic|name=Binance Funds 40 Developers to Build Open-Source Crypto Software|org=CoinDesk|date=August 30, 2019}}</ref>
 +
 +
=== Binance Charity ===
 +
 +
Binance runs, among its many products and services, a philanthropic arm of its business called Binance Charity.
 +
 +
In September 2019, the charity began a campaign to help victims of Hurricane Dorian. It began accepting cryptocurrency donations on September 5 in order to help provide food and shelter for hurricane victims through local organizations in affected areas. The company posted on its website that donations in bitcoin, Binance Coin, and XRP will be given to the Hurricane Relief Project, and that the donations will be recorded on a blockchain for transparency's sake.<ref>{{cite web|url=https://cointelegraph.com/news/binance-charity-accepts-cryptocurrency-donations-for-hurricane-relief|name=Binance Charity Accepts Cryptocurrency Donations for Hurricane Relief|org=Cointelegraph|date=September 9, 2019}}</ref><ref>{{cite web|url=https://www.binance.charity/hurricane-relief|name=Binance for Hurricane Relief|org=Binance|date=September 9, 2019}}</ref>
 +
 +
== Security ==
 +
Binance's reputation for safety and reliability was threatened by an apparently unsuccessful hacking attempt to obtain customer funds held on the exchange on March 7, 2018.<ref>{{cite web|url=https://cointelegraph.com/news/possible-hack-of-third-party-tools-affects-binance-exchange-users|name=Possible Hack Of Third-Party Tools Affects Binance Exchange Users|org=Cointelegraph|date=May 7, 2018}}</ref> Binance acknowledged the attempt and, in an incident report the next day, stated that all funds were safe.<ref>{{cite web|url=https://support.binance.com/hc/en-us/articles/360001547431-Summary-of-the-Phishing-and-Attempted-Stealing-Incident-on-Binance|name=Summary of the Phishing and Attempted Stealing Incident on Binance|org=Binance|date=May 7, 2018}}</ref>  On March 12, 2017 it announced that it was offering a cryptocurrency equivalent of $250,000 bounty for the arrest of any person involved in the "large-scale, organized effort."<ref>{{cite web|url=https://support.binance.com/hc/en-us/articles/360001615252-Binance-Hacker-Bounty|name=Binance Hacker Bounty|org=Binance|date=May 7, 2018}}</ref>
 +
 +
In a move to support institutional business, Binance announced on December 6, 2018, that it is offering subaccounts for its corporate and higher level VIP accounts. The new feature enables the master account to set distinct limits for each of its subaccounts.<ref>{{cite web|url=https://coingeek.com/binance-launches-sub-accounts-to-service-institutional-investors/|name=Binance launches sub-accounts to service institutional investors|org=CoinGeek|date=December 10, 2018}}</ref>
 +
 +
In March 2019, Binance entered into a business partnership with IdentityMind, a risk management [[fintech]] firm, in order to improve its AML/KYC screening. IdentityMind offers an SaaS service (a service which is subscription-based, like Adobe Creative Suite or Microsoft Office). This service plugs into digital platforms like Binance and provides tools that help software developers improve that platform's ability to comply with global trade laws, as well as improving its market surveillance and fraud prevention capabilities.<ref>{{cite web|url=https://www.theblockcrypto.com/tag/identitymind/|name=Binance teams up with IdentityMind to up compliance|org=The Block|date=April 12, 2019}}</ref> A few weeks later, Binance announced a similar partnership with the California-based CipherTrace, a blockchain-focused data analytics company that also works with regulators, financial institutions, and auditors in the traditional financial system. CipherTrace's software also improved Binance's AML/KYC capabilities, as well as boosting the security of its blockchain through [[on-chain]] security measures.<ref>{{cite web|url=https://www.theblockcrypto.com/tiny/binance-teams-up-with-ciphertrace-to-up-the-exchanges-compliance-procedures/|name=Binance teams with CipherTrace to up the exchange’s compliance procedures|org=The Block|date=April 12, 2019}}</ref><ref>{{cite web|url=https://ciphertrace.com/binance-partners-with-ciphertrace-to-further-strengthen-compliance-culture/|name=Binance Partners with CipherTrace to Further Strengthen Compliance Culture|org=CipherTrace|date=April 12, 2019}}</ref>
 +
 +
On May 7, 2019 Binance said it had discovered that hackers had stolen more than $40 million worth of bitcoin from its platform. About 7,000 bitcoins were stolen from a single wallet, amounting to roughly 2% of the company’s total bitcoin holdings. The company called it a “large scale security breach” and said stolen funds would be refunded through its emergency insurance account.<ref>{{cite web|url=https://www.wsj.com/articles/hackers-swipe-more-than-40-million-of-bitcoin-from-cryptocurrency-exchange-11557296830|name=Hackers Swipe More Than $40 Million of Bitcoin From Cryptocurrency Exchange|org=The Wall Street Journal|date=May 8, 2019}}</ref>
 +
 +
In August 2019, Binance announced to its users that it was investigating an alleged leak of customer KYC information, which was directly related to the hacking attack in May. The hacker distributed some of the information to ''Coindesk,'' saying that they had access to information from 60,000 more Binance users and would release them over time. Binance and CZ said in response that the information released from the "leak" does not match the information in their system, and that there was no evidence showing that the information came from the exchange itself. ''Coindesk'' reported that one of the photos released by the hacker showed signs that it had been modified.<ref>{{cite web|url=https://www.forbes.com/sites/billybambrough/2019/08/08/serious-security-warning-issued-for-worlds-biggest-bitcoin-and-cryptocurrency-exchange-binance/#6ca7f9296158|name=Serious Security Warning Issued For World's Biggest Bitcoin And Crypto Exchange, Binance|org=Forbes|date=August 9, 2019}}</ref><ref>{{cite web|url=https://www.coindesk.com/binance-kyc-issue|name=Binance Customer Data Has Leaked: What We Know and What We Don’t|org=Coindesk|date=August 9, 2019}}</ref> Binance offered a bounty of up to 25 BTC (worth $290,000 at the time) for information that could be used to identify the blackmailer.<ref>{{cite web|url=https://www.bloomberg.com/news/articles/2019-08-07/crypto-exchange-offers-290-000-reward-for-info-on-blackmailer|name=Crypto Exchange Offers $290,000 Reward for Info on Blackmailer|org=Bloomberg|date=August 12, 2019}}</ref> Later that month, Binance posted on its blog that it would offer lifetime VIP membership to users who were affected by the attack.<ref>{{cite web|url=https://cointelegraph.com/news/binance-offers-lifetime-vip-membership-to-kyc-leak-victims|name=Binance Offers Lifetime VIP Membership to KYC Leak Victims|org=Cointelegraph|date=August 26, 2019}}</ref>
 +
 +
== Bitcoin SV Feud between Zhao and Craig Wright ==
 +
 +
In April 2019, [[Craig Wright]] began arguing with a Twitter user called "Hodlnaut," a bitcoin user who became known for the "Lightning Torch" experiment, which was a promotional demonstration of the [[Lightning Network]]'s capabilities. After achieving a large Twitter following, Hodlnaut made public posts criticizing Wright, who later sent Hodlnaut a letter accusing the Twitter user of being a "fraud," and threatening legal action. This triggered a huge wave of support for Hodlnaut, as well as renewed hate for Wright, from thousands of Twitter users.<ref>{{cite web|url=https://www.coindesk.com/craig-wrights-fight-with-a-cartoon-bitcoin-astronaut-cat-explained|name=Craig Wright’s Fight With a Cartoon Bitcoin Astronaut Cat Explained|org=Coindesk|date=April 17, 2019}}</ref>
 +
 +
Binance later announced it would delist BCHSV. Zhao said over Twitter that Wright is a "fraud," and that "anyone who supports BSV from a tech perspective should be attacking the fraudulent Craig Wright, who is poisoning YOUR community, and not attack the rest of the world." He also said that "Anyone thinking CW is Satoshi should read about how a private key works, ie, learn about crypto;" this comment was made in reference to the controversial method by which Wright allegedly "proved" to [[Gavin Andresen]] and others that he is [[Satoshi Nakamoto]], a claim he has made multiple times.<ref>{{cite web|url=https://www.financemagnates.com/cryptocurrency/news/binance-delists-bchsv-ceo-calls-craig-wright-a-fraud/|name=Binance Delists BCHSV, CEO Calls Craig Wright “a Fraud”|org=Finance Magnates|date=April 15, 2019}}</ref><ref>{{cite web|url=https://twitter.com/cz_binance/status/1117609056032575489?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1117609056032575489&ref_url=https%3A%2F%2Fwww.ccn.com%2Fcraig-wright-is-a-fraud-binance-chief-changeng-zhao-slams-not-satoshi|name=CZ Binance|org=Twitter|date=April 15, 2019}}</ref>
 +
 +
Later that month, [[Shapeshift]] announced that it would also delist BCHSV. [[Kraken]] announced that it would be doing the same, citing "community sentiment" around Bitcoin Cash SV as their primary reason for doing so. According to the announcement, Kraken planned on disabling BCHSV deposits on April 22, cease trading pairs on April 29, and stop withdrawals of BCHSV May 31. The BCHSV community responded with ire. Ed Pownall, a PR representative of Calvin Ayre, founder of CoinGeek.com and one of SV's biggest supporters, accused these exchanges of "market manipulation" and "playing God," and that delisting BCHSV sets "a dangerous precedent."<ref>{{cite web|url=https://www.coindesk.com/kraken-exchange-joins-binance-shapeshift-in-delisting-bitcoin-sv|name=Kraken Exchange Joins Binance, ShapeShift in Delisting Bitcoin SV|org=Coindesk|date=April 17, 2019}}</ref>
  
 
== Key People ==
 
== Key People ==
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[[Category:Binance]]
 
[[Category:Binance]]
 
[[Category:Trading]]
 
[[Category:Trading]]
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[[Category:Cryptocurrency]]
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[[Category:exchanges]]
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[[Category:decentralized applications]]
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[[Category:decentralized exchanges]]
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[[Category:fintech]]

Revision as of 13:24, 19 September 2019


Binance
Binance002.jpg
Founded 2017
Headquarters Malta
Key People Changpeng Zhao, Founder, CEO
Employees 300
Products Cryptocurrency trading platform
Twitter @Binance
LinkedIn Profile
Facebook @binanceexchange
Website Binance.com
Releases Company News

Binance Exchange ("Binance") is a cryptocurrency-to-cryptocurrency trading platform launched in July 2017.[1]

Company Overview

Binance's operations were launched with the issuance of 200 million Binance Coins in July 2017, which raised about $15 million.[2]

Binance has had a series of domiciles, starting with China and followed by Japan and then Taiwan.

In February 2018, Binance announced that it would establish a fiat-to-cryptocurrency exchange to be headquartered in Malta, giving it a principal address in the European Union.[3] In October 2018, CEO Changpeng Zhao told reporters that Binance would open as many as ten new fiat-to-cryptocurrency exchanges over the next year. Zhao plans for them to be geographically dispersed.[4] Later that same month, Vertex Ventures China and Vertex Ventures Southeast Asia & India announced that they had invested in Binance to facilitate the establishment of a Binance Singapore. Vertex Ventures, the parent of Vertex Ventures China and Vertex Ventures Southeast Asia & India, is an investment fund affiliated with Temasek Holdings, which is owned by the government of Singapore.[5]

In August 2019, Zhao said in an interview with Cheddar.com that he estimated Binance would open a U.S. branch "within a month or two." According to him, the U.S. branch of the platform would be led by BAM Trading Services, a little-known firm.[6]

In its first known investment in mainland China since leaving the country, Binance participated in a funding round for a website called Mars Finance. Mars Finance publishes cryptocurrency data.[7]

Hacking attack, "SAFU" fund

In May 2019, Binance sustained a hacking attack that caused over $40 million worth of digital assets to be stolen from the company's hot wallets. Despite the high number of bitcoins that were stolen in this attack (7,000 BTC), Binance said in a statement that only 2 percent of the company's total bitcoin holdings were being held in the wallets. The statement also described the attack as "well-orchestrated" between "multiple seemingly independent accounts at the most opportune time." The hackers, who stole the 7000 BTC in a single transaction, triggered a total shutdown of all client withdrawals from the exchange through Binance's security measures. Zhao said over Twitter that the stolen funds would be covered by the "SAFU fund," or the Secure asset Fund for Users - an emergency fund held by Binance in order to cover lost or stolen funds from its customers.[8][9]

On Sunday, May 12, Zhao announced that deposits and withdrawals on the Binance exchange would be scheduled to resume on Tuesday, May 14th.[10]

Involvement with Libra

In June 2019, several financial news outlets reported that Binance had begun the process of potentially becoming a node with Facebook's Libra project. FinanceMagnates reported that it had spoken to Binance's CSO, Gin Chao, at a fintech event in Tel Aviv, Israel. Chao said that "early discussions have taken place" with Facebook over a possible future listing of the Libra token. Chao said that although the token will be on a private blockchain at first, Facebook ultimately may desire a secondary market for the token.[11][12]

U.S. Customers

In a June 14, 2019, announcement about its updated "terms of use" Binance said that as of September it would no longer provide services to U.S. business or retail customers.[13] On the previous day, Binance had revealed in a blog post that it had partnered with BAM Trading Services to prepare to launch a U.S. dedicated service, Binance US. The post said that Binance was licensing its trading platform as well as its wallet technologies to BAM. BAM received a FinCEN registration on June 11 according to Binance.[14]

Products and Services

Cryptocurrency Trading Platform

With a reputation for reliable technology as well as low trading fees, Binance frequently ranked No. 1 on Coinmarketcap.com’s list of exchanges during 2018.[15][16] The company has been criticized, however, for having few user verification controls and some of the industry's least rigorous “know-your-customer” policies. Users need only an email address to open Binance trading accounts with daily withdrawal limits equivalent to two bitcoins.[17] Hong Kong’s Securities and Futures Commission has issued warnings to Binance, along with several of its peers, telling the exchanges to refrain from trading cryptocurrencies that qualify as securities.

Binance announced in January 2019 that it had partnered with Simplex, an Israel-based payment processing firm, to create a way for Binance customers to buy cryptocurrencies with credit cards. According to the exchange, some countries will be excluded from this, including Iraq, Cuba Afghanistan and Libya. In addition to this, six U.S. states would also be excluded: New York, Connecticut, Hawaii, Georgia, New Mexico and Washington.[18]

In April 2019, Binance launched trading services in Singapore, though it only had one trading pair: Singapore dollars (SGD) and bitcoin (SGD/BTC). Binance CFO Wei Zhou said that more pairs would be added over time as allowed by Singaporean regulations.[19]

In June 2019, Binance announced that it was in the process of reviewing user accounts to ensure the compliance of the exchange's terms of use and know-your-customer procedures. On June 13, Binance announced that it would be formally expanding to the U.S. via a dedicated U.S.-only platform. On June 14, there was an announcement on Binance.com that the exchange had updated its terms of use agreement, stating that, "Binance is unable to provide services to any U.S. person," and that effective September 12, 2019, "users who are not in accordance with Binance's Terms of Use will continue to have access to their wallets and funds, but will no longer be able to trade or deposit on Binance.com."[20]

In September 2019, Binance announced that it was planning to add the option to purchase cryptocurrency with fiat currency using its OTC trading platform within a month.[21]

Binance Lite Australia

In March 2019, Binance announced a new platform for Australian users that allows them to buy bitcoin with cash from 1300 newsstands across Australia. The service, called Binance Lite Australia, is a brokerage service that charges a 5 percent transaction fee, plus a goods and services tax (GST) on all bitcoin purchases. Binance said that it plans to offer other cryptocurrencies under this service in the future.[22][23]

Margin Trading

On July 11, 2019, Binance announced that it had introduced margin trading capability in its new platform, Binance 2.0, which launched that day. The contracts are perpetual and positions are closed out by transacting a contract opposite the original position. To use the service, a Binance customer transfers coins from his or her exchange wallet to a margin wallet. Once in the margin wallet, those coins can be used as collateral for borrowing additional coins. Binance provides frequently updated screens indicating the customer's current debt level, interest rate charged and risk level. Customers can trade their borrowed coins on the Binance exchange page, as though they were their own. They then separately settle their debts by paying back the currency on the margin wallet screen. [24] In an August 26, 2019 article regarding Binance's new cryptocurrency lending program, CoinDesk reported that Binance's margin business charges borrowers of U.S. dollar-pegged Tether and Binance’s own BNB cryptocurrency annual interest rates as high as 10.0375% and 109% respectively.[25]

Binance Lending

A new product, Binance Lending, was announced on August 26, 2019. Binance Lending customers were invited to lend Binance coin, Ethereum classic and Tether for 14 days at an annualized interest rate of 15%, 7%, and 10%, respectively.[26] The loaning program was available for one day, August 28, and interest was payable from the 29th to September 11. Binance Lending capped total amounts it would borrow in each cryptocurrency on both a gross program basis and per individual customer basis. After the loan period, Binance Lending customers receive their deposited amount plus interest automatically credited to their Binance accounts.[27]

Derivatives

In early September 2019, Binance announced that it had launched a test of two futures platforms dubbed Futures A and Futures B. The launch was accompanied by a contest among traders testing the two platforms. The contest rewarded active, not necessarily profitable, trading on the test platforms between September 3 and September 8. The purpose of the test was to obtain feedback on trader preferences between the platforms prior to the launch of actual trading.[28]

On September 3, 2019 Binance announced that it had acquired a Seychelles-based cryptocurrency spot and derivatives trading platform called JEX, seemingly in a bid to compete better with CoinFLEX for Asian derivatives trading business.[29]

Digital Token

Binance created its own cryptocurrency on the Ethereum blockchain, Binance Coin, which is an ERC-20 utility token that can be used to pay trading fees for transactions on the Binance exchange. The coin gives users a 50 percent discount on fees compared to any other cryptocurrency used to pay fees.[30]

In March 2019, the Ministry of Production and Labor in Argentina announced that, for every Argentinian blockchain project that receives funding from Binance Labs, the Ministry will match investments of up to $50,000 through LatamEX Founders Lab, its blockchain incubator program. This caused a significant increase to Binance Coin's price.[31]

Binance Chain

Binance developed its own blockchain, Binance Chain, which it launched in mid April 2019. Shortly thereafter it introduced athe Binance Chain Explorer and a wallet.[32]

BNB was migrated to the new platform on April 23 and complies with the native Binance Chain standard, BEP-2.[33]

Decentralized Exchange (DEX)

In addition to its more "traditional" cryptocurrency trading platform, Binance also developed its own decentralized exchange, or "DEX." This platform, called Binance DEX, became publicly available for testing on February 20, 2019. Binance said its primary goal at this stage of the DEX's development was to gather public feedback, which would be used to develop a timeline for its final launch.[34]

Binance announced on April 23 that it was testing the DEX platform on Binance Chain.[35] On April 25, Binance officially launched its DEX, listing Binance Coin and Mithril (BNB/MITH) as its first trading pair.[36]

In early June 2019, reports published by Cointelegraph claimed that Binance DEX was blocking website access to users based in 29 countries, though users in those countries could still access the DEX via some wallet apps. Changpeng Zhao suggested that users could use virtual private networks (VPNs) to bypass restrictions based on geographical location, despite this explicitly violating Binance DEX's terms of service. Binance began issuing a pop-up message to users attempting to access Binance.org from one of the blocked countries, which said that after July 1, 2019, "trading and accessing to the wallet interface" would no longer be available to users in those countries.

The geoblocked countries include the USA, Albania, Belarus, Bosnia, Burma, the Central African Republic, Democratic Republic of Congo, South Korea, Cote D'Ivoire, the Crimean region of Ukraine, Croatia, Cuba, Herzegovina, Iran, Iraq, Kosovo, Lebanon, Liberia, Libya, Macedonia, Molodova, Serbia, Somalia, Sudan, South Sudan, Syria, Venezuela, Yemen, and Zimbabwe.[37]

Stablecoins

During the fourth quarter of 2018 Binance added several fiat-based stablecoins to its coin listing.[38] Binance also started using XRP (Ripple) as the quoting currency for some of its cryptocurrency pairs at the end of December.[39]

Binance later announced that it would develop its own stablecoin, Venus, similar to Facebook's Libra. In an interview published on August 29, Binance co-founder He Yi said that the company would learn from the mistakes of the Libra Association by engaging with regulators day one. He also said that Venus would be aimed at "non-Western" markets.[40]

Binance USD

Stablecoin issuer Paxos and Binance announced on September 5, 2019, that Paxos would issue a New York State Department of Financial Services-approved U.S. dollar-backed stablecoin called Binance USD (BUSD). It is an ERC-20, Ethereum-based token. It will be issued and redeemable on the Paxos platform, but it will trade against bitcoin, Binance Coin (BNB) and Ripple (XRP) on Binance.[41]

Binance X

On August 29, 2019, Binance announced Binance X, a new program dedicated to spurring greater research in open-source blockchain development. The announcement also said it was funding 40 developers conducting research into open-source cryptocurrency software.[42]

Binance Charity

Binance runs, among its many products and services, a philanthropic arm of its business called Binance Charity.

In September 2019, the charity began a campaign to help victims of Hurricane Dorian. It began accepting cryptocurrency donations on September 5 in order to help provide food and shelter for hurricane victims through local organizations in affected areas. The company posted on its website that donations in bitcoin, Binance Coin, and XRP will be given to the Hurricane Relief Project, and that the donations will be recorded on a blockchain for transparency's sake.[43][44]

Security

Binance's reputation for safety and reliability was threatened by an apparently unsuccessful hacking attempt to obtain customer funds held on the exchange on March 7, 2018.[45] Binance acknowledged the attempt and, in an incident report the next day, stated that all funds were safe.[46] On March 12, 2017 it announced that it was offering a cryptocurrency equivalent of $250,000 bounty for the arrest of any person involved in the "large-scale, organized effort."[47]

In a move to support institutional business, Binance announced on December 6, 2018, that it is offering subaccounts for its corporate and higher level VIP accounts. The new feature enables the master account to set distinct limits for each of its subaccounts.[48]

In March 2019, Binance entered into a business partnership with IdentityMind, a risk management fintech firm, in order to improve its AML/KYC screening. IdentityMind offers an SaaS service (a service which is subscription-based, like Adobe Creative Suite or Microsoft Office). This service plugs into digital platforms like Binance and provides tools that help software developers improve that platform's ability to comply with global trade laws, as well as improving its market surveillance and fraud prevention capabilities.[49] A few weeks later, Binance announced a similar partnership with the California-based CipherTrace, a blockchain-focused data analytics company that also works with regulators, financial institutions, and auditors in the traditional financial system. CipherTrace's software also improved Binance's AML/KYC capabilities, as well as boosting the security of its blockchain through on-chain security measures.[50][51]

On May 7, 2019 Binance said it had discovered that hackers had stolen more than $40 million worth of bitcoin from its platform. About 7,000 bitcoins were stolen from a single wallet, amounting to roughly 2% of the company’s total bitcoin holdings. The company called it a “large scale security breach” and said stolen funds would be refunded through its emergency insurance account.[52]

In August 2019, Binance announced to its users that it was investigating an alleged leak of customer KYC information, which was directly related to the hacking attack in May. The hacker distributed some of the information to Coindesk, saying that they had access to information from 60,000 more Binance users and would release them over time. Binance and CZ said in response that the information released from the "leak" does not match the information in their system, and that there was no evidence showing that the information came from the exchange itself. Coindesk reported that one of the photos released by the hacker showed signs that it had been modified.[53][54] Binance offered a bounty of up to 25 BTC (worth $290,000 at the time) for information that could be used to identify the blackmailer.[55] Later that month, Binance posted on its blog that it would offer lifetime VIP membership to users who were affected by the attack.[56]

Bitcoin SV Feud between Zhao and Craig Wright

In April 2019, Craig Wright began arguing with a Twitter user called "Hodlnaut," a bitcoin user who became known for the "Lightning Torch" experiment, which was a promotional demonstration of the Lightning Network's capabilities. After achieving a large Twitter following, Hodlnaut made public posts criticizing Wright, who later sent Hodlnaut a letter accusing the Twitter user of being a "fraud," and threatening legal action. This triggered a huge wave of support for Hodlnaut, as well as renewed hate for Wright, from thousands of Twitter users.[57]

Binance later announced it would delist BCHSV. Zhao said over Twitter that Wright is a "fraud," and that "anyone who supports BSV from a tech perspective should be attacking the fraudulent Craig Wright, who is poisoning YOUR community, and not attack the rest of the world." He also said that "Anyone thinking CW is Satoshi should read about how a private key works, ie, learn about crypto;" this comment was made in reference to the controversial method by which Wright allegedly "proved" to Gavin Andresen and others that he is Satoshi Nakamoto, a claim he has made multiple times.[58][59]

Later that month, Shapeshift announced that it would also delist BCHSV. Kraken announced that it would be doing the same, citing "community sentiment" around Bitcoin Cash SV as their primary reason for doing so. According to the announcement, Kraken planned on disabling BCHSV deposits on April 22, cease trading pairs on April 29, and stop withdrawals of BCHSV May 31. The BCHSV community responded with ire. Ed Pownall, a PR representative of Calvin Ayre, founder of CoinGeek.com and one of SV's biggest supporters, accused these exchanges of "market manipulation" and "playing God," and that delisting BCHSV sets "a dangerous precedent."[60]

Key People

References

  1. Crypto Exchange Binance Denies It Will Introduce Dollar Trading. Bloomberg.
  2. From Zero To Crypto Billionaire In Under A Year: Meet The Founder Of Binance. Forbes.
  3. World's Biggest Cryptocurrency Exchange Is Heading to Malta. Bloomberg.
  4. Binance Reveals Plan to Launch Crypto Exchanges on Almost Every Continent. Coindesk.
  5. Binance Secures New Funding From Vertex Ventures. Coindesk.
  6. Binance to Launch US Platform Soon, Helped by a Little-Known Partner. Cointelegraph.
  7. Binance’s First Strategic Chinese Investment is a CoinDesk Rival. Bloomberg.
  8. Binance hacked: More than $40 million stolen in ‘large-scale security breach’. Coin Rivet via Yahoo Finance.
  9. Binance Security Breach Update. Binance.
  10. Hacked Crypto Exchange Binance to Resume Deposits and Withdrawals on Tuesday. Coindesk.
  11. Binance Talking to Facebook About Libra Listing: Reports. Coindesk.
  12. Exclusive: Binance in Talks with Facebook Over Libra. FinanceMagnates.
  13. Binance to Stop Serving US Traders Following Announcement of US-Dedicated Platform. CoinTelegraph.
  14. Binance Announces Partnership with BAM to Launch US Exchange. Binance.
  15. How a Billionaire Crypto King Built the No. 1 Exchange in Just 8 Months. Bloomberg.
  16. Crypto Exchange Binance Denies It Will Introduce Dollar Trading. Bloomberg.
  17. How a Billionaire Crypto King Built the No. 1 Exchange in Just 8 Months. Bloomberg.
  18. Binance Users Can Now Pay for Crypto With Credit Cards. Coindesk.
  19. Binance Singapore Launches But Offers Just One Trading Pair, Report. Cointelegraph.
  20. Binance Singapore Launches But Offers Just One Trading Pair, Report. Cointelegraph.
  21. Binance to Add Fiat-to-Crypto OTC Trading in a Month, Co-Founder Says. Coindesk.
  22. Binance Now Lets Australians Buy Bitcoin With Cash at Over 1,300 Stores. Coindesk.
  23. Binance Goes Down Under, Launches Cash-to-Crypto Service in Australia. Binance.
  24. Binance Margin Trading Guide. Binance.
  25. Binance Launches Crypto Lending With Up to 15% Annual Interest. CoinDesk.
  26. Binance enters into crypto lending space, offers interest-earning opportunities for BNB, ETC and Tether. The Block Crypto.
  27. Binance Launches Crypto Lending With Up to 15% Annual Interest. CoinDesk.
  28. Binance Launches $216,000 Futures Trading Contest on Testnet Platforms. CoinTelegraph.
  29. Binance acquires crypto derivatives exchange to offer options, futures and perpetual contracts. The Block Crypto.
  30. From Zero To Crypto Billionaire In Under A Year: Meet The Founder Of Binance. Forbes.
  31. Binance Coin (BNB) Price Analysis: What Pushed The Crypto Exchange’s Token to Number 7. Bitcoin Exchange Guide.
  32. Binance Chain Launches, Firm Expects to Execute Mainnet Swap on April 23. CoinTelegraph.
  33. Binance DEX Launches on Native Mainnet Earlier Than Planned, Invites Community Input. CoinTelegraph.
  34. You Can Now Test Binance’s Decentralized Crypto Exchange. Coindesk.
  35. Binance DEX Launches on Native Mainnet Earlier Than Planned, Invites Community Input. CoinTelegraph.
  36. Binance DEX officially launches, listing Mithril as the first pair. The Block.
  37. Binance DEX: Navigating Country-Specific Cryptocurrency Trading Restrictions. Cointelegraph via Yahoo Finance.
  38. Top Crypto Exchange Binance Adds Ripple-Based Trading Pairs in New Expansion. Cointelegraph.
  39. Ripple Surges 18% as Binance Uses XRP as Base Currency. Finance Magnates.
  40. Binance: Venus Project Will Court Regulators, Avoid Facebook’s Mistakes. Cointelegraph.
  41. Binance launching its own USD-pegged stablecoin ‘BUSD,’ with Paxos as custodian. The Block Crypto.
  42. Binance Funds 40 Developers to Build Open-Source Crypto Software. CoinDesk.
  43. Binance Charity Accepts Cryptocurrency Donations for Hurricane Relief. Cointelegraph.
  44. Binance for Hurricane Relief. Binance.
  45. Possible Hack Of Third-Party Tools Affects Binance Exchange Users. Cointelegraph.
  46. Summary of the Phishing and Attempted Stealing Incident on Binance. Binance.
  47. Binance Hacker Bounty. Binance.
  48. Binance launches sub-accounts to service institutional investors. CoinGeek.
  49. Binance teams up with IdentityMind to up compliance. The Block.
  50. Binance teams with CipherTrace to up the exchange’s compliance procedures. The Block.
  51. Binance Partners with CipherTrace to Further Strengthen Compliance Culture. CipherTrace.
  52. Hackers Swipe More Than $40 Million of Bitcoin From Cryptocurrency Exchange. The Wall Street Journal.
  53. Serious Security Warning Issued For World's Biggest Bitcoin And Crypto Exchange, Binance. Forbes.
  54. Binance Customer Data Has Leaked: What We Know and What We Don’t. Coindesk.
  55. Crypto Exchange Offers $290,000 Reward for Info on Blackmailer. Bloomberg.
  56. Binance Offers Lifetime VIP Membership to KYC Leak Victims. Cointelegraph.
  57. Craig Wright’s Fight With a Cartoon Bitcoin Astronaut Cat Explained. Coindesk.
  58. Binance Delists BCHSV, CEO Calls Craig Wright “a Fraud”. Finance Magnates.
  59. CZ Binance. Twitter.
  60. Kraken Exchange Joins Binance, ShapeShift in Delisting Bitcoin SV. Coindesk.