If you are someone who is planning to invest in cryptocurrencies and have searched the internet to find reliable exchange, then you must have heard about Binance. Although founded back in 2017, Binance has managed to gain tremendous growth in the past 4 years. The exchange has even earned the status of being one of the largest cryptocurrency exchanges in terms of trade volumes.
At present, Binance has over 30 million active/registered users performing cryptocurrency trades and transactions through its platform. The platform has gained tremendous growth until now and is responsible for generating several billions worth of trading volume on a daily basis.
Binance’s Role in Cryptocurrency Expansion
When it comes to the adoption rate of Binance, the exchange is responsible for attracting millions of users on its platform on a regular basis. When it was time for the entire cryptocurrency industry to boom in late 2020, Binance played one of the best roles in the advancement and growth of the industry.
So far, the exchange has collaborated with several mainstream institutions for the exposure of the cryptocurrency industry in the mainstream sector. The exchange has formed partnerships with many projects inside and outside of the cryptocurrency industry. Furthermore, the exchange has even contributed in funding rounds for several other protocols/projects in the crypto-space.
Binance’s Role in Traditional Finance Sector and Stocks
Some other milestones achieved by Binance include launching its own stocks through the NASDAQ Stock Exchange back in April of 2021. Then the exchange had also developed and launched its own payment services application called “Faster Payments”. The application has been adopted in several countries but it has been adopted on a very large scale in the United Kingdom.
In the UK, Faster Payments is being used just like the Chinese use WeChat or AliPay. Furthermore, BInance had even launched the stock tokens for major companies such as Apple, Microsoft, MicroStrategy, and many more.
Is it Okay to Pick Binance as a Crypto-Trading Solution?
Despite all the services, products, and profits Binance may offer, it is still facing a lot of scrutiny from the regulatory authorities’ end from around the world. At present regulatory authorities from countries such as the United States, Hong Kong, Thailand, and the United Kingdom are on to Binance.
Their major concerns are that the exchange has been providing services to the locals in their countries without any approval or license. Out of all major countries, the United Kingdom’s regulatory authorities have become very active against Binance.
UK’s Devastating Action against Binance
Just recently, it was the UK regulatory authority known as the Financial Conduct Authority (FCA) that launched a regulatory investigation against Binance. The regulatory authority claimed that Binance had acquired no such license or authorization from the authority to provider crypto-services.
The firm revealed that as a result of its negligence, it is was going to launch an investigation against Binance. The FCA stated that until the investigation was concluded, the exchange would not be allowed to operate and provide cryptocurrency services in the country.
Since then, Binance has been claiming that its cryptocurrency activities in the country are running without any regulatory interruption. Binance gave the reason that the FCA had banned Binance Market Limited (BML), which is a completely different entity from Binance.com.
Binance gave the reason that BML providers no cryptocurrency related services in the United Kingdom. However, Binance.com would continue providing its cryptocurrency services to customers because it was not banned by the FCA at all.
Still, Binance was not able to gain the trust of the investors in the United Kingdom. Ever since the feud between Binance and FCA began, the exchange has lost many users to other competing cryptocurrency exchanges in the United Kingdom.
Twice, Binance has halted services for its “Faster Payments” application in the United Kingdom and the second instance is still ongoing. Then there are stock tokens that Binance has announced would be shut down from October of 2021.
This means that Binance is facing a downtrend and a bad time, so it wouldn’t be wise to stick around or remain connected with the exchange.