Posted 10 months ago | by Catoshi Nakamoto
Binance. Now there’s a project that’s been in the news recently. There’s an old philosophical question that most people recognize: if a tree falls in a forest and no one is around to hear it, does it make a sound? First of all let’s just go ahead and say: YES OF COURSE IT DOES! Sound is just vibration. And the ears are what picks up the vibration and makes it into sound… wait… so… if no one is there to hear it, does the tree make a sound? Ok this is a bit of a philosophical loop. And that’s exactly the kind of philosophical loop going on right now with Binance: if a crypto exchange is headquartered on the internet and there’s no one around to regulate it, can it be regulated, and who can regulate it? 1Binance operates globally, and it has users in many different countries. Each country has securities regulations, but they’re all different and regionally enforced. All these questions make us wonder: what does this mean for Binance coin? That’s exactly what we’re here today to find out.Read More
Let’s get it.
Welcome to Bit Boy Crypto; home of the Bitsquad, the largest crypto community in all the interwebs. My name is Ben. Every day on this channel I show you how to make money in crypto. If you like money and crypto make sure to hit that subscribe button. In this video we talk about questions surrounding the Binance cryptocurrency exchange, and what this could mean for Binance Coin.
Binance coin, or BNB is the Binance crypto exchange’s ERC 20 token. Binance coin has a max supply of 200 million coins, and all the mining was done before the ICO in 2017. This means that all the tokens that will ever exist are already in circulation. In September of 2020, Binance Smart Chain, or BSC, was launched to complete the Binance ecosystem. Binance Smart Chain is a stand-alone blockchain that is compatible with the Ethereum network. Most, if not all of the BSC dApps are compatible with Ethereum, as well as its ecosystem components and tooling. There is room for BSC to evolve along with Ethereum as it gets updated. True to its name, Binance Smart Chain has indeed shown itself to be smart; evolving into an extremely useful and adaptable crypto ecosystem. Speaking of smart, it’s obvious that you are smart…you’re here watching my videos…so do the smart thing and smash up the like button for more content like this. It’s the best way to support the channel, and it keeps content flowing; and helps you learn more about crypto and digital assets.
Using the BNB token on Binance allows users to get discounts on trading when using a BNB asset pair, make payments and transfers using Binance Smart Chain, and stake BNB in the Binance Vault to gain interest and rewards. Currently the reward token for staking BNB is Klay at an APY of 0.99 percent, and there is also a BNB reward of 0.67 percent APY. Klay is the token behind a South Korean messaging app called “Kako Talk”; and in the past the reward tokens have ranged from gaming tokens like My Neighbour Alice and TLM Alien Worlds, to LIT and DODO. Binance coin recently saw a massive price run between January and April, going from 39 dollars all the way up to almost 700 dollars per coin. The price has seen a substantial pullback since, hitting a low of two hundred and eleven dollars. Recently the price of BNB has seen another small run up to over three hundred dollars, which has surprised speculators considering binance has been in the headlines lately; and not exactly for the best reasons. The price of BNB holding steady is a clear sign that crypto investors believe in the coin and they’re still actively using the Binance ecosystem.
Recently, there has been a crackdown on regulation for the Binance trading platform. Beginning in June, UK regulators ruled that Binance can’t conduct any “regulated activity” in the UK. The FCA or Financial Conduct Authority, has stated that it’s concerned about advertisements claiming high returns on Crypto investments. The other concern is that Binance has not registered with the FCA, and therefore can not operate as an exchange in the UK. Despite the ruling, the FCA has stated that “there will be no impact on UK residents who use the website to purchase and sell cryptocurrencies.” Meaning that for now, existing Binance users in the UK should expect to continue using the platform uninterrupted. Just this week, however, Binance announced that it will be suspending its Faster Payment GBP, or Great Britain Pound, withdrawal system, and SEPA withdrawals have also been suspended. SEPA is short for Single Euro Payments Area, and it is the primary cashless payment system for the Euro in the UK. Binance users in the UK can still make withdrawals through a credit or debit card, but this system that many have relied on in the past has been suspended.
In Ontario Canada, where Binance has also been investigated and found to be unlawfully operated, Ontario-based Binance customers have until the end of December 2021 to close their positions and move funds out of Binance. The Ontario Securities Commission, or OSC, has accused Binance of failing to comply with the province’s regulations. Similar allegations have been filed against Poloniex and Kukoin. In March the trading platforms were issued warning that they must contact OSC and find out how to comply with securities regulations. Instead of taking the steps needed to comply, Binance has issued a statement that they will withdraw service from Ontario.
Binance claims that it is headquartered in the Grand Cayman Islands, but the Cayman Island Monetary Authority, or CIMA, is also investigating Binance’s activities. CIMA has stated that although Binance claims to be incorporated in Grand Cayman Island, it is not licensed to operate a crypto asset trading platform from or within the territory. Although the investigation does not make accusations of potential wrongdoing, it does state that Binance operates in a decentralized manner, and none of its activities occur legally within Grand Cayman Island.
So where is Binance’s headquarters? Well, right now it exists wherever its founder is: Changpeng Zhou, or CZ, as he’s usually called within the industry. CZ is a Chinese-Canadian coder who started in coding for asset trading by creating trading platforms for Wall Street. In 2017 he created Binance cryptocurrency exchange and it became the largest on the planet in one hundred and eighty days. Currently it sustains about five hundred million dollars in daily trading volume, and occupies twenty-five percent of the crypto trading market share. CZ was born in China, and later moved to British Columbia Canada. He then attended university in Montreal Quebec, before moving to Toyko to work at the Tokyo stock exchange and to do his coding work for Wall Street. From there he moved to Shanghai, and became the Chief Technology officer of OK Coin in 2013. In 2017 CZ left OK coin and founded Binance. When you do an internet search of Binance, it is said to operate out of Grand Caymen Islands. Recently we’ve found out that this isn’t technically true, and the decentralized nature of cryptocurrency has fallen into yet another grey area. The big question that is coming to Binance is, if an asset exchange services the world, what regulators do they have to comply with. As it turns out, binance’s true location is on the Internet, and this is something we have never seen before.
Changpheng Zhou has responded well to the implications, saying on Twitter: “I believe a well-developed legal and regulatory framework in the long term will be a solid foundation that truly makes crypto essential in everyone’s daily life.”
I can’t deny the feeling that all of this news surrounding Binance could be boiled down to the intentional spreading of FUD, short for fear uncertainty doubt. As I reach for my trusty tinfoil hat, I wonder: is this a deliberate attack on Binance? When a star rises so quickly like Binance did and captures so much of the money flowing into the crypto markets, it definitely seems like a worthy target. Over the next week we’re going to be looking into some of the heavy hitters in crypto, most specifically the Digital Currency Group, or DCG, and how they act as a cartel of crypto assets. Binance is notably missing from DCG’s list of companies they’re invested in, which include Bitpay, Blockstream and Coinbase. Could the competition coming from Binance be just a little too fierce for some deep pockets in the industry? Hm… makes you wonder.
In the meantime, the price of BNB is holding steady against the headwind of regulation, and we believe that between the strength of Binance’s CEO and how much is at stake for Binance, ultimately the questions surrounding regulation will be answered and the storm will pass.
Comment down below, what do you think of the latest news with Binance? Do you want to hear more about the DCG and how it manipulates the crypto market for its own benefit? What do you see in the future for BNB? And be sure to smash up the like button, it helps the channel and lets the algorithm know that you want to hear more.
That’s all I got. Be blessed, Bitboy out.