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Multiple bans on Binance

  • Posted By
    10Pointer
  • Categories
    Economy
  • Published
    23rd Aug, 2021

Financial regulators across the world have targeted major cryptocurrency exchange Binance.

Context

Financial regulators across the world have targeted major cryptocurrency exchange Binance.

What is Binance?

  • Binance is headed by Changpeng Zhao, a Canadian known as "CZ". 
  • The exchange offers a wide range of services to users across the globe, from cryptocurrency spot and derivatives trading to loans and non-fungible tokens.
  • It also runs a "decentralised" exchange that allows users to trade directly with each other. 
  • Its own cryptocurrency, Binance Coin, is the third-biggest in the world, with some $68 billion-worth in circulation.

Mapping the Scale

  • By some measures, it's the biggest platform in the world. Its trading volumes in July were $455 million, down almost a third from a month earlier amid cooler crypto markets but still No.1 globally, according to data from CryptoCompare.
  • Binance also leads crypto derivatives trading, with volumes topping $1.4 trillion in July - a 55 per cent share of the overall market.

Under Security Lense

  • Dutch Central Bank: Binance was not in compliance with the anti-money laundering and anti-terrorist financing laws.
  • US: Binance is also reportedly under investigation by the U.S. Justice Department and Internal Revenue Service.
  • Others: A string of other regulators - including those in Japan, Britain, Germany, Italy, Hong Kong and Malaysia - have also issued warnings against Binance.

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