Skip to main content

$76 BILLION A DAY: HOW BINANCE BECAME THE WORLD'S BIGGEST CRYPTO EXCHANGE

Changpeng Zhao, CEO of the Binance cryptocurrency exchange. JULIANA TAN FOR THE WALL STREET JOURNAL

$76 Billion a Day: How Binance Became the World’s Biggest Crypto Exchange

The trading platform surged by operating from nowhere in particular—without offices, licenses or headquarters. Now governments are insisting on taking some control

The world’s fastest-growing major financial exchange has no head office or formal address, lacks licenses in countries where it operates and has a chief executive who until recently wouldn’t answer questions about his location.

Started just four years ago, Binance is the exchange giant that towers over the digital currency world, a crypto equivalent of the London, New York and Hong Kong stock exchanges combined. After a burst of growth, Binance processes more trades for cryptocurrencies such as bitcoin and ether each day, $76 billion worth, than its four largest competitors put together, according to data provider CryptoCompare.

The years of largely unfettered, unregulated growth for Binance in particular and the crypto industry broadly, however, are coming to an end.

Financial regulators increasingly worry that digital assets, until recently dismissed by some as a fad, have grown so quickly they now are systemically important. In an October speech, Bank of England official Jon Cunliffe brought up the 2008 subprime-mortgage-fueled crisis and said of crypto, “When something in the financial system is growing very fast, and growing in largely unregulated space, financial stability authorities have to sit up and take notice.”

Binance is drawing the most regulatory attention. Authorities in a dozen countries have cautioned users in recent months the exchange is unregistered or not authorized to provide various services.

The Securities and Exchange Commission is looking into how Binance conducts business in the U.S., where it has many state licenses, according to former executives. The SEC has asked for a list of information from Binance’s U.S. affiliate, including how it relates to the global organization, according to one of the executives. Meanwhile, the Department of Justice is examining whether Binance has abetted money laundering, one former executive said. Bloomberg News previously reported the DOJ investigation.

The SEC and the DOJ declined to comment.


Comments

Post a Comment

Popular posts from this blog

Countries Accepting Nigerians Seeking Second Citizenship

  Countries Accepting Nigerians Seeking Second Citizenship Nigerians are able to access the following citizenship and immigration programs: The Caribbean Second Citizenship Programs, Caribbean nations like St. Kitts & Nevis, St. Lucia and Grenada offer second citizenship through their respective Citizenship-by-Investment programs. A holder of one of these passports may travel visa free to about 135 countries, including all European Union countries, the UK, Russia, Turkey, Singapore and Hong Kong. Holding a citizenship from one of these respected countries may also make it easier to obtain residency status or study in other countries, and allows political security and makes it easier to open bank accounts in foreign jurisdictions. To qualify, an applicant needs to be of good reputation and make a government donation of at least $100,000 USD after approval of their citizenship application.  Approval of a Citizenship-by-Investment application normally takes about 3 months, a...
3 comments
Read more

EXCLUSIVE BREAST MILK IS THE BEST ONDO FIRST LADY TELLS NURSING MOTHERS AT BREASTFEEDING WEEK CELEBRATION

    Government Stresses Importance of Breast milk for Children as  Ondo State Celebrates Commencement of World Breastfeeding  Week   . ....525 nursing mothers breastfeed children. Ondo State on Friday joined the rest of Nigeria and the International Community in the celebration of 2024 World Breastfeeding Week. In a message to the event, held at the International Event Centre,  The Dome, in Akure, the First Lady, Mrs. Oluwaseun Aiyedatiwa emphasized the critical importance of initiating breastfeeding within the first hour of birth and maintaining exclusive breastfeeding for the first six months. The wife of the Governor, who was represented by Commissioner for Women Affairs, Mrs. Lola Fagbemi, reiterated that workplaces in the state are being adapted to support nursing mothers, highlighting the state's commitment to providing conducive environments for breastfeeding. She noted that Ondo State places significant priority on maternity leave for nursing ...
Post a Comment
Read more

INFRASTRUCTURE MINISTRY CELEBRATES PASTOR BABALOLA FOR TRANSFORMATIVE LEADERSHIP

Ministry Celebrates Pastor Babalola for Transformative Leadership  The Ministry of Works and Infrastructure has honored Pastor Joseph Ayoade Babalola, the immediate past Special Adviser to the Governor on Infrastructure, Lands, and Housing, for his exceptional leadership, character, and contributions during his tenure. The event, held at the Ministry’s headquarters, was attended by top government officials and staff, who described Pastor Babalola as a visionary leader, a mentor, and a team player who exemplified humility and a strong work ethic. Speaking at the ceremony, the Administrative Secretary of the Ministry, Engineer Akinluyi Omotola, emphasized the need to celebrate Babalola’s legacy, which, according to him, left an indelible mark on the Ministry. “Pastor Babalola brought a new dimension to leadership during his short but impactful tenure. He fostered unity, love, and inclusion, ensuring that no officer was sidelined or marginalized. His humility, openness, and respect fo...
Post a Comment
Read more