Binance Reviews for June 2023

Binance closes BTC withdrawals amid congestion on the Bitcoin network. The Bitcoin mempool was clogged with over 400,000 transactions waiting to be processed on May 7. BTC withdrawals on May 7 due to an alleged overflow of transactions on the Bitcoin network. The Bitcoin mempool was clogged with over 400,000 transactions waiting to be processed at the time of writing. The mempool is known as the “waiting area” for incoming transactions before they are verified independently by each node on the network. Binance tweeted that BTC withdrawals had resumed after nearly an hour of halting. Outflows on the crypto exchange peaked on May 7, rising to $187 million, according to data from CryptoQuant. Behind the congestion is believed to be a surge in BRC-20 transactions in the last few days due to memecoins like Pepe (PEPE). The memecoin trading hype drove Bitcoin transaction fees to their highest point in two years. On May 3, the total amount of fees paid on the Bitcoin blockchain reached $3.5 million, jumping nearly 400% from late April, Cointelegraph reported.

Binance Australia Derivatives license canceled by securities regulator. In February, Binance Australia Derivatives abruptly closed certain derivatives positions and accounts, citing investor classification compliance. The Australian Securities and Investments Commission (ASIC) has canceled the license of Binance Australia Derivatives after a targeted review of Binance’s operations in the country. “ASIC has today canceled the Australian financial services license held by Oztures Trading Pty Ltd trading as Binance Australia Derivatives,” the securities regulator stated in the official announcement on April 6. Following the license cancellation, Binance Australia Derivatives clients will not be able to increase derivatives positions or open new positions with the platform from April 14. The company will also require users to close any existing derivatives positions before April 21, as Binance is expected to close any remaining open positions on that day.

Binance CEO: Crypto industry will probably move to non-dollar stablecoins. Changpeng Zhao, also known as “CZ,” says that the industry may start to use stablecoins pegged to the euro, yen, or Singapore dollar, following recent actions against the U.S. dollar-pegged stablecoin BUSD. The crypto industry will “probably” start using euro, yen, or Singapore dollar-based stablecoins in the future, reducing its reliance on United States dollar-based stablecoins, according to Binance CEO Changpeng Zhao, also known as “CZ.” CZ gave the statement in a Feb. 14 Twitter Spaces event in answer to a question about the crypto industry using gold as a standard of value instead of the U.S. dollar. CZ agreed that it “makes sense” to use gold. However, “most people’s costs are still in fiat currencies.” For this reason, most people calculate their investment returns in dollars, which is why U.S. dollar-backed stablecoins are “still important.”

Mastercard, Binance to launch their second prepaid crypto card in Latin America. Crypto adoption and usage in Brazil are higher than the global average. Credit card giant MasterCard has teamed up with the world’s largest crypto exchange Binance to launch another prepaid crypto card in Latin America. On Jan. 30, Binance announced the launch of the Binance Card in Brazil. The new card is issued by Dock, a payment institution regulated by the Brazilian Central Bank. It will allow new and existing Binance users in the country with valid national IDs to make purchases and pay bills with crypto assets. The card is in a beta testing phase and will be “widely available in the coming weeks,” according to Binance. Brazil is the second country Binance has launched the product following Argentina in August 2022. According to the announcement, Brazil is among the top ten markets for Binance globally.

Binance's efforts to improve transparency of its reserves also exposed red flags in the crypto exchange's finances, according to accounting and financial specialists consulted by The Wall Street Journal. As noted by a former Financial Accounting Standards Board (FASB) member and investment manager, the report released by the audit firm Mazars give not bring investors confidence about the exchange's finances, as it lacks information related to the quality of internal controls and how Binance's systems liquidate assets to cover margin loans. Another red flag raised by the newspaper's sources regards the lack of information about Binance's corporate structure. According to the report, Binance’s chief strategy officer, Patrick Hillmann, was unable name Binance’s parent company, as Binance has been going through a corporate reorganization for almost two years. Differences between the total Bitcoin liabilities were also highlighted. The exchange's proof of reserves shows that Binance was 97% collateralized, excluding assets lended to users through loans or margin accounts, indicating that the 1:1 ratio of reserves to customer assets was not achieved.

Binance CEO shares ‘two big lessons’ after FTX’s liquidity crunch. CZ took to Twitter on Nov. 8 sharing “two big lessons” that crypto companies should learn amid the downfall of crypto exchange FTX. Binance CEO Changpeng “CZ” Zhao has shared his take on “two big lessons” to be learned from the FTX saga, saying cryptocurrency firms shouldn’t use their own tokens as collateral and should also keep “large reserves.” In a Nov. 8 tweet, Zhao laid out two learnings after the significant “liquidity crunch” at FTX, which has ultimately resulted in a non-binding letter of intent from Binance to acquire the struggling exchange. Two big lessons: 1: Never use a token you created as collateral. 2: Don’t borrow if you run a crypto business. Don't use capital "efficiently". Have a large reserve. Binance has never used BNB for collateral, and we have never taken on debt. FTX’s liquidity issues appeared to have come after a Nov. 6 tweet from Zhao saying Binance would be liquidating its holdings of FTX Token FTT tickers down $4.00 following “recent revelations” related to reported ties between FTX and the trading firm Alameda Research showing the firm had significant FTT holdings.

Binance Proof-of-Reserve pledge gains support following FTX crisis. The call for a more detailed disclosure of liquidity through the use of Proof-of-Reserves has been backed by many high-profile industry figures. Following the liquidity crisis and acquisition of cryptocurrency exchange FTX, Binance CEO Changpeng “CZ” Zhao said his exchange will soon start a Proof-of-Reserves audit system to allow verification of its digital asset holdings. In a Nov. 8 Twitter post, Zhao pledged to implement a Proof-of-Reserve mechanism at Binance to provide “full transparency” through the use of Merkle Trees - a data structure used to encode blockchain data more efficiently and securely.

The only minus I noticed is that this crypto exchange has some limits on direct crypto transactions. But I’m not a full-time crypto trader that’s why this isn’t a determining feature for me. I like the spreads on forex pairs, I’m used to these trading instruments and I find margin requirements of the platform quite good for forex trading.

Binance recovers the majority of funds stolen from Curve Finance. Binance recovered and froze around $450,000 worth of the stolen assets, which is around 80 percent of the stolen funds. Crypto exchange Binance has recovered a big part of the funds from the recent hack that targeted the decentralized finance (DeFi) protocol Curve Finance. In a tweet, Binance CEO Changpeng Zhao announced that the exchange has frozen and recovered $450,000 of the stolen assets, which is more than 80 percent of the stolen funds. According to Zhao, the hacker tried to send the funds to the exchange in various ways but was detected by Binance. The exchange is currently working to return the funds to their rightful owners. The Curve Finance team detected the hack on Tuesday and alerted their users to refrain from using their website. An hour after the warning, the team announced that it was able to find and resolve the issue. However, the attackers were still able to hijack around $537,000 worth of USD Coin (USDC) before the issue was resolved. According to experts from the blockchain analytics firm Elliptic, a hacker compromised the domain name system (DNS) of Curve Finance, which ended with malicious transactions getting signed. The experts told Cointelegraph that the funds were then sent to various exchanges and crypto mixers in an attempt to hide the trail. In the end, the funds were sent to Binance and were caught by its team.

Binance US will delist AMP following SEC claim token is a security. The exchange said all AMP trading will be halted on Aug. 15, adding that it “may resume at some point in the future." United States-based crypto exchange Binance.US said it will be delisting the AMP token “out of an abundance of caution” of possible enforcement by federal regulators. In a Monday blog post, Binance.US said it will be closing deposits of Amp (AMP) and removing the AMP/USD trading pair on Aug. 15 following the token's mention in a legal action from the U.S. Securities and Exchange Commission, or SEC. The federal regulator filed a complaint against a former Coinbase product manager and two individuals in July that claimed that AMP and eight other cryptocurrencies were “crypto asset securities” that fell under the SEC’s purview.

Satisfied in general, it's a good platform.

Binance Futures delists coin-margined LUNA perpetual contracts. Binance suspended withdrawals for LUNA and UST amid the UST stablecoin losing its peg to the U.S. dollar on Tuesday. Amid collapsing Terra network’s cryptocurrencies Luna (LUNA) and TerraUSD (UST), crypto exchange Binance continues deactivating related trading services. Binance’s derivatives arm Binance Futures has delisted coin-margined LUNA perpetual contracts, the firm officially announced on May 12. “Users are advised to close any open positions prior to the delisting time to avoid automatic settlement,” the statement by the platform reads. Binance Futures has also started conducting automatic settlements on the contracts, reducing the leverage tiers and updating margin tiers for coin-margined LUNA perpetual contracts. As such, the 8x leverage tier is now the max leverage tier available on Binance for LUNA perpetual contracts, replacing the earlier maximum available leverage of 21-25x. 11-20x leverage is reduced to 7x, while 6-10x leverage is replaced with a 6x leverage tier, according to the updated data. According to the announcement, existing positions opened before the update will not be affected. “Binance reserves the right to further change the max leverage and margin tiers for USDT-margined LUNA perpetual contracts without further notice,” the firm added. The latest trading updates on Binance Futures come soon after Binance suspended withdrawals for LUNA and UST on May 10 amid a massive selloff of tokens on the Terra network, with the UST stablecoin losing its peg to the United States dollar and crashing to $0.67.

I can argue for hours with anyone that would say that Binance is not the most progressive trading platform we have today. It has everything that both nascent and experienced traders need. The fees might not be the lowest, but they are definitely on the south side of the industry standard. CZ is doing a marvelous job of expanding the reach of Binance and adding new feats and stuff. I am a happy trader when I am not Binance, and I don't plan to migrate anywhere.

Binance launches Binance Bridge 2.0 to connect Ethereum-based tokens (both listed and unlisted) as BTokens to the BNB Chain. You can use your wrapped BTokens to explore the metaverse, blockchain-based games, decentralized finance (Defi) and more in the BNB Chain ecosystem, reducing the need for swaps and overcoming other interoperability barriers that have plagued blockchain. Therefore, Binance users will be able to use the bridge as a one-stop shop for all centralized finance (Cefi) and DeFi. The intent behind the first version of the Binance Bridge was to make multiple blockchains more interoperable. In addition, it allowed anyone to exchange their crypto assets into Binance Chain (now BNB Chain) and Binance Smart Chain (now BNB Smart Chain) wrapped tokens (and vice versa). The technique for swapping tokens (supported only on Binance.com) contains two categories in the first version: Peg-In and Peg-Out. Using Peg-In, users can swap native tokens for pegged tokens on the BNB Chain or BNB Smart Chain. Meanwhile, the Peg-Out technique allows users to convert pegged tokens to native tokens on the BNB Chain or the BNB Smart Chain. Regular deposit and withdrawal functionalities in the Binance Bridge version 2.0 allow users to bridge tokens between their original blockchains and the BNB Chain. In the future, Binance also wants to improve its mobile app to enable users to perform similar conversions with a single click. This article aims to discuss the integration of CeFi and DeFi through Binance Bridge 2.0 and how the Binance Bridge works.

Binance continues to lower barriers to cryptocurrency trading. With the intent to lead a new era of global financial inclusion, infrastructure providers must first prove that cryptocurrency usage is for everyone. Cryptocurrencies were designed to lead a new era of global financial inclusion, providing people access to financial services that they would otherwise be unable to have. Through a simplified financial structure, individuals and businesses around the world are finally having their needs met, and this transformation is believed to reduce poverty, improve prosperity and transform how the world transacts on a large scale. Although freedom of money is the objective, the technology is still in its early stages of adoption. Therefore, it is the exchanges and infrastructure providers that now hold a pivotal role in providing an initial touchpoint for users to engage with and learn of the benefits that come with digital currencies and the transformation they represent. Binance, one of the world's leading cryptocurrency exchanges, has proven to be a leader in these aspects. Since its inception, the platform has continued to work hard to create an ecosystem that is inclusive of the entire blockchain community, from digital asset projects to merchants to crypto investors and traders of every level. With continued efforts to lower the barriers to entry in this space, features like their competitive pricing and fee structures, deep liquidity, reduced slippage and wide product selection, among other continuous improvements, have proven crucial to the growth of their community and the crypto industry alike.

Binance launches Binance Bridge 2.0 to integrate CeFi and DeFi. The service would allow users to bridge assets from any blockchain to BNB Chain. On Tuesday, centralized cryptocurrency exchange Binance announced the rollout of Binance Bridge 2.0. The feature enables users to bridge assets from any blockchain, including tokens not listed on the Binance app, to the BNB Chain. Bridged tokens listed on Binance will be stored in the Funding or Spot Wallet, while unlisted bridged tokens will be transferred to the Funding Wallet only. Users can bridge-in or bridge-out tokens between their native blockchains and BNB Chain via regular deposit and withdrawal functions. In the future, Binance also plans to create a better version of its mobile app to allow users to facilitate such conversion via a single click.

Korean crypto exchanges are now in compliance with the Travel Rule. Complying with the rules puts South Korea ahead of the curve for regulating virtual assets, but may be harming the domestic industry with overbearing transfer restrictions between exchanges. South Korean crypto exchanges have reached the government-mandated deadline to come into compliance with the so-called Travel Rule, but not all industry players are pleased with the measure. Starting today, Korean exchanges will flag any crypto transfers worth more than roughly $821. Transfers higher than that value will be restricted to user-verified wallets and a select number of exchanges that have adopted their anti-money laundering system. The Travel Rule is a set of guidelines issued by the international financial watchdog Financial Action Task Force (FATF) designed to help authorities track the movement of virtual assets between virtual asset service providers (VASP) such as crypto exchanges or digital asset issuers.

Thailand reportedly exempts 7% crypto tax for traders on authorized exchanges. The revised tax policy exempts crypto traders from the mandatory 7% VAT on authorized exchanges while offering tax exemptions of up to 10 years for crypto startup investors. The finance ministry of Thailand has reportedly eased up crypto tax regulations to promote investment in the digital asset market. The changes to the tax regulations come just a few weeks after the government scrapped its early plans of introducing a 15% tax on crypto gains. The new tax policy exempts crypto traders from the 7% value-added tax (VAT) on authorized exchanges, reported Reuters. The revised tax policy would also allow traders to offset their annual losses against gains for their crypto investment. This comes as big relief for traders, given most of the governments at this point are only looking to tax gains without taking into account the losses incurred by traders due to the crypto market volatility. The new tax exemptions would come into effect from April 2022 and last until December 2023. The new tax policy promises to offer tax exemptions of up to 10 years for investors who invest for at least two years in crypto startups in the country.

The leading global exchange by trading volume had a roller coaster of a ride in terms of regulations in 2021. After seeing a series of compliance warnings from nearly a dozen countries, Binance mended its way toward the end of the year. The exchange forged several new partnerships, but its growth in the Asia region was something that got everyone’s attention. Binance acquired an 18% stake in Singapore’s securities exchange Hg Exchange. However, the exchange withdrew its crypto license, which many claimed was due to non-compliance with the Anti-Money Laundering guidelines. Binance CEO Changpeng Zhao called the reports as fear, uncertainty and doubt, or FUD, and maintained that Singapore remains one of the top priorities for the exchange. The exchange is now looking to reestablish its presence in Thailand after an early warning in 2021. The crypto exchange partnered with Gulf Energy Development PCL, a Thai holding company run by billionaire Sarath Ratanavadi. Binance is looking to open a crypto exchange in a joint venture with a consortium led by MDI Ventures, an investment arm of Telkom Indonesia. Apart from its dominant presence in South East Asia, Binance is also penetrating West Asia and the Middle East with a recent MOU with the Dubai World Trade Center Authority.

Binance resumes DOGE withdrawals days after Elon Musk’s comments. Binance users were unable to withdraw Dogecoin due to a “combination of unlikely factors,” the exchange said. Binance, one of the world’s largest cryptocurrency exchanges by daily trading volumes, has resumed Dogecoin (DOGE) withdrawals following a system glitch caused by the DOGE wallet upgrade. The exchange officially announced on Monday that it had restarted DOGE withdrawals after experiencing a major issue where Binance users were unable to withdraw Dogecoin for 17 days. Additionally, 1,634 users on Binance were sent old transactions due to a conflict of several DOGE wallet versions. This happened due to a “combination of unlikely factors” and ultimately affected only Binance. The exchange wrote: “In short, if 1) your platform had listed DOGE all the way back in 2019, at v1.14.0 2) had transactions stuck in the wallet 3) had upgraded the wallet to v1.14.2 4) AND then updated to v1.14.5 — you can have an issue.”