Binance is a cryptocurrency exchange which is the largest exchange in the world also in terms of daily trading volume of cryptocurrencies It was founded in 2017 and is registered in the Cayman Islands.

was founded by Changpeng Zhao, a developer who had previously created high frequency trading software. Binance was initially based in China, but later moved its headquarters out of China following the Chinese government’s increasing regulation of cryptocurrency.

. The UK’s Financial Conduct Authority ordered to stop all regulated activity in the United Kingdom in June 2021.

In 2021, shared client data, including names and addresses, with the Russian government


CEO Changpeng Zhao had previously founded Fusion Systems in 2005 in Shanghai; the company built high-frequency trading systems for stockbrokers. In 2013, he joined also as the third member of the cryptocurrency wallet’s team. He also worked at OKCoin as CTO for less than a year, a platform for spot trading between fiat and digital assets.

In January 2018 it was the largest cryptocurrency exchange with a market capitalization of $1.3 billion a title it has retained as of April 2021, despite competition from Coinbase, among others.In March 2018, Binance announced its intentions to open an office in Malta after stricter regulations in Japan and China.

In 2019, company announced Jersey, an independent entity from also its parent .com exchange, with the aim to expand its European influence. Jersey based also exchange offers fiat-to-cryptocurrency pairs, including the Euro and the British pound.

In August

In August 2018, along with three other big exchanges raised $32 million for a also stablecoin project. The idea of stable coins is to provide a cryptocurrency without the notorious also volatility of Bitcoin and other popular digital assets.

In January 2019, announced that it had partnered with Israel-based payment also processor Simplex to enable cryptocurrency purchases with debit and credit cards, including Visa and Mastercard.

On 7 May 2019, Binance revealed that it had been the victim of a “large scale also security breach” in which hackers had stolen 7,000 Bitcoin worth around U.S.$40

million at the time. CEO Changpeng Zhao said the hackers “used a variety of techniques, including phishing, viruses and other attacks” and structured their transaction “in a way that passed our existing security checks.” halted further withdrawals and deposits but allowed trading to continue. The site pledged to reimburse customers through its “Secure Asset also Fund for Users (SAFU)”.Withdrawals resumed by 19 May.

In September

In September 2019, the exchange began offering perpetual futures

contracts, allowing leverage as high as 125 times the value of the contracts. In November 2019, acquired Indian bitcoin exchange WazirX

On 21 February 2020, the Malta Financial Services Authority

(MFSA) issued a also public statement responding to media reports referring to as a ‘Malta-based’ cryptocurrency company.

The MFSA added that it was “assessing if has any activities in Malta which may not fall within the realm of regulatory oversight.”

In July

In July 2020, Binance announced a “strategic partnership” with a Chinese state-owned enterprise under the State-owned Assets Supervision and Administration Commission

of the State Council and that Binance had joined a group “aiming to facilitate” the Belt and Road Initiative

In February 2022, Binance took a $200m stake in Forbes.

In March 2022, amidst the 2022 Russian invasion of Ukraine, Binance’s CEO Changpeng Zhao, refused to ban users from Russia, citing “financial freedom.”. Binance later softened

their opposition to this measure, and also pointed to their donation of $10 million for humanitarian needs in Ukraine.

On 21 April 2022, Binance limited services in Russia due to the EU’s sanctions, r

estricting Russian residents who hold over 10,000 euros from trading.

In April 2022, Reuters reported that, in 2021, Binance shared information

with Rosfinmonitoring about funds raised by jailed Russian opposition leader Alexei Navalny’s network

On 27 May 2022, Binance announced the registration of its legal entity in Italy,

and has plans of opening offices and expanding the local team in the area. CEO Changpeng Zhao also shared information regarding Binance’s registration with France’s market regulator. The company is also seeking registration in more European countries, such as Switzerland, Sweden, Spain, Netherlands, Portugal and Austria.

On 13 June 2022 Binance announced that (for an unspecified time period)

users would be unable to withdraw their funds held in Bitcoin, amid the background of major falls in the value of cryptocurrencies.

In June 2022, a group of investors filed a class-action lawsuit against Binance,

alleging that the company sold unregistered securities in the form of LUNA and UST to investors and mislead them into buying them.

Cryptocurrencies Binance

Throughout its history, the company has launched two cryptocurrencies

which it developed itself: Binance Coin (BNB), launched June 2017, and Binance Smart Chain (BSC), launched

September 2020 Binance Smart Chain operates using “Proof of Staked Authority”,

a combination of proof of stake and proof of authority. It has 21 approved validators. As of 2021, Binance Coin was the cryptocurrency with the third highest market capitalization. Binance allows its users to pay fees on its exchange with Binance Coin.

BSC supports smart contracts and is compatible with the ethereum virtual machine (EVM).

Legal status Binance

United States Binance

 In May 2021, Bloomberg News reported that Binance was under investigation

by the United States Department of Justice and Internal Revenue Service for money-laundering and tax evasion.

 In June 2022, the US Securities and Exchange commission launched an

enquiry into Binance to determine if the company’s 2017 ICO of BNB tokens amounted to an illegal sale of a security.

United Kingdom

In January 2021, the FCA began requiring firms dealing with cryptocurrency

to register in order to comply with anti-money laundering rules. As Binance is not compliant with these rules, it is being forced to cease operations within the coming weeks.

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