Binance

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

Binance Exchange ("Binance") is a crypto-to-crypto exchange 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 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.[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]

Products and Services

Cryptocurrency Exchange

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.[6][7] 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.[8] 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.[9]

Decentralized (DEX) Exchange

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.[10]

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.[11] 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.[12]

Stablecoins

During the fourth quarter of 2018 Binance added several fiat-based stablecoins to its coin listing.[13] Binance also started using XRP (Ripple) as the quoting currency for some of its cryptocurrency pairs at the end of December.[14]

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.[15] Binance acknowledged the attempt and, in an incident report the next day, stated that all funds were safe.[16] 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."[17]

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.[18]

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.[19] 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.[20][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]

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. How a Billionaire Crypto King Built the No. 1 Exchange in Just 8 Months. Bloomberg.
  7. Crypto Exchange Binance Denies It Will Introduce Dollar Trading. Bloomberg.
  8. How a Billionaire Crypto King Built the No. 1 Exchange in Just 8 Months. Bloomberg.
  9. Binance Users Can Now Pay for Crypto With Credit Cards. Coindesk.
  10. You Can Now Test Binance’s Decentralized Crypto Exchange. Coindesk.
  11. From Zero To Crypto Billionaire In Under A Year: Meet The Founder Of Binance. Forbes.
  12. Binance Coin (BNB) Price Analysis: What Pushed The Crypto Exchange’s Token to Number 7. Bitcoin Exchange Guide.
  13. Top Crypto Exchange Binance Adds Ripple-Based Trading Pairs in New Expansion. Cointelegraph.
  14. Ripple Surges 18% as Binance Uses XRP as Base Currency. Finance Magnates.
  15. Possible Hack Of Third-Party Tools Affects Binance Exchange Users. Cointelegraph.
  16. Summary of the Phishing and Attempted Stealing Incident on Binance. Binance.
  17. Binance Hacker Bounty. Binance.
  18. Binance launches sub-accounts to service institutional investors. CoinGeek.
  19. Binance teams up with IdentityMind to up compliance. The Block.
  20. Binance teams with CipherTrace to up the exchange’s compliance procedures. The Block.
  21. Binance Partners with CipherTrace to Further Strengthen Compliance Culture. CipherTrace.
  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.