Binance

Main article: Cryptocurrency exchanges

Binance is an infrastructure solutions provider for the blockchain and cryptocurrency industries, providing users with a suite of financial products, including a digital asset exchange. Binance provides users with a suite of cryptocurrency products and offerings in the following areas: Trading and Finance, Education, Research, Philanthropy, Business Incubation, Decentralized and Infrastructure Solutions, and many others.

Performance indicators

2023: Cryptocurrency market share falls from 74% to 50%

The share of trading volumes on the Binance cryptocurrency exchange decreased from 74% in December 2022 to 50% in October 2023. At the same time, the state of the CEO of the Changpeng Zhao platform has sharply decreased. This is stated in the study, the results of which were published on October 28, 2023.

More than one and a half dozen top managers left the Binance site, including the head of Binance UK Jonathan Farnell, the head of Binance US Brian Schroder, the director of Binance in East To Europe Gleb Kostarev and the director in the CIS Vladimir Smerkis. The company is under pressure from financial regulators USA and. In Europe particular, U.S. Securities and Exchange Commission (SEC) she filed a lawsuit against Binance and Zhao with allegations of securities transactions without proper registration and misleading investors about supervisory mechanisms.

The American regulator recognized the BNB token, as well as the BUSD stablecoin carrying the exchange brand, as securities. At the same time, the SEC demanded a blocking of the assets of the American division of Binance. As a result, a number of trading companies were forced to reduce their trading operations on the cryptocurrency exchange.

According to the Bloomberg Billionaires Index, as of the end of October 2023, Zhao's fortune is approximately $16.8 billion. For comparison: in July of the year under consideration, the businessman's personal assets were estimated at $45.6 billion.

In December 2022, Binance's share of the cryptocurrency market was estimated to be 74.96% (peak value). In January 2023, this figure fell to 72.74%, and subsequently continued to decline. So, in April 2023, a value of 60.88% was recorded, and in July of the same year - 55.82%. In August and September 2023, the indicator was consistently reduced to 54.15% and 50.63%. As of October 30, 2023, the value is 50.21%.^[1]

2022

Trading volume for October - $4,621 billion

As of October 2022

Exchange liabilities secured by reserves by 101%

The audit company Mazars in December 2022 completed an audit of the reserves of the Binance crypto exchange. The exchange's liabilities are secured by reserves by 101%. Britain criticised Mazars over the summer for the "unacceptable" quality of its audit work.

2021: World's largest cryptocurrency exchange

Business in Russia

Main article: Binance in Russia

History

2024

Nigerian government's request to Binance to compensate country for $10 billion in losses from crypto exchange operations

Nigeria wants $10bn from cryptocurrency exchange Binance as a fee for alleged losses caused to the government by its operations.

"Huge losses from their operations have been recorded and the government is asking them for little money. They really destroyed our economy in a very short time, 'the president's information and strategy adviser said in early March 2024.

Crypto traders used Binance to manipulate Nigeria's currency, undermining the central bank, which he said is' the only body that can fix exchange rates in the country ', according to his adviser.

Law enforcement agencies are investigating. The Central Bank said that in 2023, $26 billion was transferred from unidentified sources to Binance in Nigeria, and some aspects of cryptocurrency transactions "are related to illegal flows."

Detention of two Binance executives in Nigeria for doing business without registration

As local media reported at the end of February 2024, Binance employees were detained in Nigerian Abuja, a day after they flew to the country to negotiate with the Nigerian authorities.

Binance executives reportedly met with senior cybersecurity officials and other investigators on February 26 afternoon. Authorities have asked for data relating to transactions involving Nigerian naira on the Binance platform over the past seven years. In addition, they demanded that some data relating to Nigeria be deleted from the Binance platform.

It is known that managers of the crypto exchange refused to comply with the requirements put forward by the Nigerian government. As a result, the negotiators were accused of managing billions of business without the necessary registration and documentation. The court issued a warrant for their detention for at least 12 days. The names of the managers are not disclosed, it is known that one representative of the crypto exchange is a US citizen, the other is Britain.

Nigeria's Binance Lockdown As Naira Weakens

In early 2024, the Nigerian government blocked the online platforms of Binance and other crypto firms to stop "continuous manipulation of the forex market and illegal movement of funds." The authorities believe that cryptocurrencies are used for criminal activities, and this significantly weakens the naira. In addition to Binance, Forextime, Octafx, Crypto, FXTM, Coinbase, Kraken were blocked.

2023

A court in the United States sentenced Zhao to pay a fine of $150 million. Binance will pay $2.7 billion

A US court on December 19, 2023 ruled against the cryptocurrency exchange Binance and its former CEO Changpeng Zhao, approving billions in fines for money laundering in a case brought by the US Commodity Futures Trading Commission.

Zhao will pay $150 million and Binance will pay $2.7 billion to the CFTC as a result, the agency said in a statement.

Richard Teng's appointment as CEO

On November 22, 2023, the CEO of the cryptocurrency exchange Binance Changpeng Zhao resigned from his post. His post was taken by the former head of regional markets, Richard Teng. Read more here.

Investors withdrew about $956 million from Binance

In 24 hours, investors withdrew about $956 million from Binance after its head Changpeng Zhao left office and received a prison sentence after pleading guilty as part of an investigation into illegal financing in the United States.

The deal, in which Binance will pay $4.3 billion to the US authorities, calls into question the future of the world's largest cryptocurrency exchange and strikes another blow to an industry mired in scandals.

Demand $4.3 billion by the US authorities to dismiss the criminal case. Zhao pleaded guilty

On November 20, 2023, it became known that the US Department of Justice is demanding more than $4 billion from the largest cryptocurrency exchange Binance to resolve a long-term investigation into this site. In this case, Binance founder and leader Changpeng Zhao may be prosecuted.

The proceedings relate to Binance's alleged involvement in money laundering, bank fraud and sanctions violations. The investigation is being conducted by the Anti-Money Laundering and Asset Recovery Division of the Criminal Department, as well as the National Security Division and the US Attorney's Office in Seattle. The agreement between the crypto exchange and the Ministry of Justice is aimed at reaching a compromise that will allow Binance to continue operations. This will prevent the collapse of the site, which can result in extremely negative consequences both for cryptocurrency holders and for the entire crypto market as a whole.

US demands $4 billion from Binance to end criminal case

According to Bloomberg, referring to information received from "informed persons," the structure of the upcoming decision, as well as specific accusations as of mid-November 2023, has not been officially determined. It is noted that Zhao lives in the UAE, with which the United States does not have an extradition treaty. And therefore, bringing the founder of Binance to criminal responsibility will be problematic.

Binance seeks to minimize risks in any settlement, including by pushing for a deferred prosecution agreement. If, as part of the proceedings, a payment of $4 billion is determined for Binance, this will become one of the largest fines in the history of criminal cases of cryptocurrency. The United States will not prosecute as long as the company complies with the regulations, which usually include monetary recovery and consent to a detailed statement of the facts describing the offenses.^[2]

Binance Holdings Ltd. and its chief executive, Changpeng Zhao, have agreed to plead guilty to criminal and civil charges as part of a deal struck with the Justice Department, according to the Wall Street Journal.

Zhao agreed to step down as CEO and pleaded guilty to violating anti-money laundering requirements as part of an agreement that involved the Treasury Department and the Commodity Futures Trading Commission.

Turkish lira became the most popular currency - with a share of 75%

In early September 2023, the Turkish lira accounted for 75% of all trading to fiat money on the Binance cryptocurrency exchange. Thus, the lira became the most popular currency on the specified site. Such data are given in the study, the results of which were released on November 10, 2023.

The lira boom may be due to the influx of crypto investors into the Turkish market. 27% of Binance survey participants began their journey as investors in the crypto market within a year (by November 2023), and 8% joined the platform within six months. Most respondents hold up to $175 (approximately 5,000 lira at the exchange rate as of November 13, 2023) in cryptocurrency and prefer to invest heavily in real estate.

The Turkish lira accounted for 75% of all trade to fiat money

It is noted that the profitability factor is one of the main reasons for the interest of Turkish residents in cryptocurrency. Ease of monitoring, lack of a minimum threshold and low transaction costs remain among the key factors attracting new investors. At the same time, the inevitable risks associated with cryptocurrency stop many potential Turkish investors.

For three years (by November 2023), the penetration of cryptocurrency in Turkey increased from 16% to 40%, and the country took 12th place in the global index of the use of cryptocurrency assets Chainalysis Global Crypto Adoption Index for 2023. Turkey even received humanitarian aid in cryptocurrency during the earthquakes of 2023.

Meanwhile, Turkey is developing new rules for managing crypto assets. This is understood to help persuade the Financial Action Task Force (FATF) to remove the country from the "grey list" it made in 2021. Then it was said that Turkey adhered to all FATF standards, except one - related to cryptocurrencies.^[3]

Belgium work ban

On June 26, 2023, it became known that the Belgian Financial Services and Markets Authority obliged the Binance cryptocurrency exchange to urgently stop working in the country.

A representative of the Belgian Financial Services and Markets Authority explained that Binance was banned from providing services to users from Belgium, as the platform provides services from countries that are not part of the European Economic Area (EEA). In this regard, the regulator ordered Binance to immediately stop offering or providing any and all such services in Belgium.

Binance exchange was banned from providing services to users from Belgium, as the platform provides services from countries that are not part of the European Economic Area (EEA)

Persons or firms regulated by the laws of Belgium, which is not a member of the EEA, are prohibited from offering or providing virtual currency exchange services for legal currencies or depository wallet services in the country. Failure to comply with this ban since June 2023 carries criminal penalties under article 136 of the Belgian Law on the Prevention of Money Laundering and the Financing of Terrorism.

In this regard, the Belgian department, by its decision of June 23, 2023, decided to oblige Binance to immediately stop offering or providing in Belgium any services for the exchange of virtual currencies for legal currencies, as well as depository wallet services.

We are disappointed with this decision on the part of the Belgian Financial Services and Markets Authority, despite the ongoing negotiations. We will assess the details of this order and will continue to work together with the regulators of Belgium and the whole world, - Binance official comment.

Binance does not dispute that it offers such services in Belgium. Based on the general terms and conditions that apply to Belgian platform customers www.binance.com. 27 companies participate in the operational or technical aspects of the provision of these services, 19 of which are located outside the EEA.

In addition to the order to immediately cease operations in Belgium, the Belgian Financial Services and Markets Authority required Binance to take urgent action to return all cryptographic keys to Belgian customers. The Company shall transfer them to legal entities regulated by the legislation of the EEA Member State and duly authorized by its domestic legislation to carry out such activities, including in Belgium.^[4]

Leaving Britain

In mid-June 2023, the world's largest crypto exchange Binance filed an application with the UK Financial Conduct Authority to revoke the registration of its subsidiary Binance Markets. The application was approved by the regulator.

From mid-June 2023, Binance will not be able to provide any services in the UK. According to Bitcoin, this step comes at a time when the world's leading cryptocurrency exchange is taking steps to focus on fewer European markets. Due to the fact that there is an increase in attention from EU regulators, as well as in the run-up to new European crypto rules.

In mid-2021, the UK regulator canceled another Binance license. The UK Financial Conduct Authority initially placed restrictions on Binance Markets, banning the firm from any regulated activity in the country. Binance Markets is a separate entity and does not offer services through the website.

Binance's regional manager, Ilir Laro, said in a comment to Finance Magnates that the decision had no impact on operations as the firm had never run it. Laro also added that the crypto exchange still owns five regulated entities in EU countries, including, Poland,,, and Spain Italy. Sweden France

No other entity in the Binance Group has permission or registration in the UK to do regulated business in the UK, the UK Financial Conduct Authority said.

Binance still offers a range of products and services to customers from the United Kingdom via its website, according to the regulator www.binance.com. The Financial Conduct Authority has warned Britons against trading on the Binance exchange and warned of fines for carrying out transactions by credit institutions without registration, licences or permission for a particular transaction.^[5]

SEC files lawsuit against Binance and CEO Changpeng Zhao

According to a filing on May 5, 2023, the SEC filed a lawsuit against Binance and CEO Changpeng Zhao for violating U.S. securities circulation rules.

Reduction of 20% of the state

On May 31, 2023, it became known that the Binance cryptocurrency exchange is conducting a comprehensive restructuring, during which the global headcount will be reduced by about 20%.

It is alleged that Binance is forced to reorganize due to the unstable situation in the cryptocurrency market, the collapse of a number of companies in the relevant area and the difficult macroeconomic situation as a whole.

Binance carries out comprehensive restructuring

The total number of Binance employees globally is about 8,000. Thus, layoffs could affect 1,600 workers. The specific number of people being reduced will be determined individually for different divisions and regions. It is emphasized that some Binance structures continue to expand their staff.

According to CCData estimates, trading volume on Binance in April 2023 fell by 48% compared to the previous month - to $287 billion: this was the second lowest level since 2021. In addition, Binance's total market share continues to decline: it fell to 46.3% - the worst figure since October 2022. Another reason for the planned cuts, in addition to the fall in the cryptocurrency market, may be Binance's desire to optimize its structure after growing too quickly during the cryptocurrency boom.

However, the founder and head of Binance, Changpeng Zhao, said that the crypto exchange uses a staff adjustment program that provides for the reduction of employees who do not meet the requirements or do not fulfill their duties properly. At the same time, Zhao said, there is no specific percentage of people who fall under such measures.^[6]

Work stoppage in Canada

In May 2023, it was announced that Binance was discontinuing operations in Canada.

The largest algotraders in the world are important clients of the exchange

Bloomberg named Binance's anonymous VIP clients. According to the publication, they are the largest algotraders in the world - Jane Street Group, Tower Research Capital and Radix Trading.

Binance's service provided preferential transaction fees and faster access to trading in exchange for providing liquidity. The platform also promised such customers "prompt notification of any law enforcement investigation into their account," help in circumventing KYC rules and its own restrictions.

Australia to revoke company's derivatives licence

On 6 April 2023 Australia , the ASIC regulator cancelled the Australian Licence (AFS) for Binance Australia Derivatives financial services.

Binance will require customers to close all existing derivatives positions by April 21, 2023.

Creation of a blockchain hub in Georgia

On March 27, 2023, the Binance cryptocurrency exchange announced the opening of a regional hub in Georgia. This project is aimed at developing educational initiatives in the field of blockchain, attracting talented specialists in this area and stimulating the digital finance market in the region.

Binance is already operating in Georgia. So, in February 2023, the company signed an agreement with the local operator CityPay to accept cryptocurrency payments. Binance also entered into a strategic cooperation agreement with the Georgian Innovation and Technology Agency (GITA). In addition, the cryptocurrency exchange signed a memorandum of partnership with the Georgian University of Business and Technology (BTU) and with four other local educational institutions, including Kutais International University and Georgian-American University. Under these agreements, Binance and Binance Academy will provide training materials and organizational support to help partner universities expand blockchain learning opportunities.

Binance announced the opening of a regional hub in Georgia

The opening of a hub in Georgia is a logical continuation of the dialogue that we began with the government last year. Thanks to the new structure, we will strengthen the development of the recruiting program in the country, as well as focus even more on the regional presence of Binance, "said Georgy Chagelishvili, general manager of Binance in Georgia.

The Binance team in Georgia already has approximately 25 people. Thanks to the opening of the regional center, dozens of additional jobs will be created by the end of 2023. Binance emphasizes that Georgia is an important market in terms of the introduction of cryptocurrency technologies. In November 2022, Binance CEO Changpeng Zhao visited Georgia for the first time. During this visit, he met with Prime Minister Irakli Garibashvili, as well as with local business and crypto communities.^[7]

Lawsuits in the United States with allegations of fraud and advertising of securities that caused losses of $1 billion

USA The March 2023 Commodity Futures Commission (CFTC) lawsuit alleges that Binance traded on its own platform "against its own customers," for which 300 special accounts were allocated, directly or indirectly related to the management of the exchange. This practice has all the hallmarks of insider trading.

Investigators presented evidence of how the management of the exchange "covered up" large US customers who were prohibited from trading at sites registered outside the country. The 74-page lawsuit contains a fragment of correspondence, where the head of Binance Changpeng Zhao asks colleagues to ensure that a large American trader "does not connect to the exchange directly from American IP addresses," which is regarded as a deliberate departure from compliance with US laws.

The plaintiff claims that the crypto exchange massively instructed its customers how to use the site using VPN services bypassing regulatory bans.

In early April 2023, a lawsuit was also filed against Binance in the United States for conducting advertising campaigns to sell unregistered securities, resulting in losses of $1 billion.

US senators wrote a letter to Binance about a large number of violations

The three senators on the U.S. Senate Banking Committee are Elizabeth Warren, Massachusetts, Chris van Hollen, Md., and Roger Marshall, Kansas State - wrote a letter to Binance in March 2023 regarding their activities, stating that Binance and related organizations were purposefully evading regulators, transferred assets to criminals and sanctions evaders and concealed underlying financial information from their clients and the public.

Actions of US regulators against Paxos lead to an outflow of $788 million from Binance

On February 14, 2023, $788 million was withdrawn from Binance in the previous 24 hours. Investors are taking their money amid news of U.S. regulators taking action against Paxos, the issuer of stablecoin Binance USD.

Purchase of assets of the bankrupt cryptocurrency company Voyager for $1 billion

On January 10, 2023, bankrupt crypto lender Voyager Digital received initial court approval to sell its assets. The buyer will be the cryptocurrency company Binance.US, and the transaction amount will be $1 billion. Read more here.

2022

Loss of 15% of assets or $12 billion in 2 months

Binance lost a total of 15% of its assets - about $12 billion in less than 2 months, Forbes wrote in January 2023.

Allegations of money laundering of drug dealers

Bitcoin and other cryptocurrencies are becoming popular among Mexican drug cartels. Two cartel members used Binance to launder the exchange, according to the U.S. Drug Enforcement Administration. A meth and cocaine trafficking gang operating in the US, Mexico, Europe and Australia has used the world's largest cryptocurrency exchange, Binance, to launder tens of millions in drug proceeds, according to an investigation. Between $15 million and $40 million of their revenue could pass through Binance, the DEA said.

An investigation into Binance's use of an unnamed Mexican gang began in 2020, according to a search warrant obtained by Forbes.

Trader, Mexican national Carlos Fong Echavarria said he had cash coming from "family restaurants and farms." According to the warrant, he made 146 cryptocurrency purchases in 2021 worth almost $42 million and sold more than $38 million on 117 orders for sale. The Drug Enforcement Administration said it believed at least $16m of that amount came from proceeds from drug sales.

Buying a Japanese crypto exchange

At the end of November 2022, Binance announced the purchase of the Japanese cryptocurrency exchange Sakura Exchange BitCoin (SEBC). The value of the transaction and its other terms of the company did not disclose. Read more here.

Binance pulled out of FTX exchange takeover after examining its books

The WSJ on Nov. 9, 2022, said Binance was pulling out of the FTX deal "following an analysis of the company's structure and books," the crypto exchange said in a statement.

"We hoped we could support FTX customers to provide liquidity, but the issues that have emerged are out of our control or the ability to help," Binance said. For more on the crisis in the FTX, see here.

Kazakhstan creates digital tenge on Binance blockchain

On October 27, 2022, it became known that the National Bank of Kazakhstan decided to integrate its digital currency (CBDC) with the BNB Chain blockchain. This was announced by Changpeng Zhao, founder and CEO of one of the largest cryptocurrency exchanges Binance. Read more here.

Hiring an ex-agent in the United States FBI to the position of head of the investigation department

The American division of the Bitcoin exchange Binance in October 2022 hired ex- FBI agent Jay Kahn as the head of the investigation department.

Creation of a $500 million fund to lend to miners

In October 2022, it was announced that Binance was launching a $500 million fund to lend to miners. Due to the fall in the price of bitcoin and the increase in the complexity of mining, mining is balancing on the verge of unprofitability.

Hackers attacked the exchange and stole cryptocurrency worth $0.5 billion

In early October 2022, hackers attacked one of the blockchain networks of the world's largest crypto exchange Binance and stole tokens worth $568 million, but were able to withdraw not the entire amount. The site suspended work for some time.

The vulnerability of the system due to which hackers were able to attack the network has already been "localized," said Binance co-founder Changpeng Zhao. According to security experts, the attackers conducted two transactions and stole 2 million Binance Coin (BNB) tokens, the cost of which at the time of theft is $568 million.

Hackers robbed Binance of $0.5 billion

In particular, the BSC Token Hub bridge was attacked, which became a vulnerable place in the chain. Blockchain bridges are designed to allow secure and fast transfers between different networks, including other exchanges using different cryptocurrencies. Apparently, as information security specialists from the SecurityHQ company note, hackers acted rapidly and were well aware of the existing vulnerability. In such cases, there are no traces, and preparation takes many weeks. As a result, despite the quick reaction of Binance specialists, the attackers managed to withdraw $110 million in an unknown direction. A small part was blocked with the help of partners about $7 million, while the bulk was frozen on the internal BNB Chain blockchain.

The losses are not as huge as they could be, but the problem turned out to be much more significant than previously reported. The thing is that hackers discovered a vulnerability in the BNB Chain blockchain, which made it possible to draw new tokens for more than $0.5 billion. According to Changpeng Zhao, the money of cryptocurrency holders was not affected, and the team is dealing with the problem. $432 million is frozen and will be burned, as they are unauthorized in the general network, but $100 million has already been transferred to other cryptocurrencies and it will not be possible to return them. This means that the Binance exchange will have to state the loss of funds. Due to the fact that the stolen BNB funds will in any case return to the network, where they will need to be burned, but since the hackers have already disappeared into the global web, the company will have to pay for everything.^[8]

Signing Memorandum of Understanding with Busan Government on Blockchain Infrastructure Development

Over the past two weeks, three major cryptoexchanges ones - Binance, FTX and - Huobi have signed Busan memoranda of understanding with the city government aimed at developing infrastructure in blockchain. This was announced South Korea on September 16, 2022 by representatives of Huobi Global. More. here

Obtaining approval for work in Kazakhstan

In August 2022, the Binance crypto exchange received approval to work in Kazakhstan. The relevant document was issued by the Astana Financial Services Authority (AFSA), the regulatory body that oversees the Astana International Financial Center (AIFC).

Binance was able to provide Kazakhstan to trade services and storage of digital assets on the AIFC platform. This happened a few months after the Kazakh financial service launched a pilot project to create and develop cryptocurrency exchanges in the country. Then, in June 2022, authorities allowed Nur-Sultan AFSA-registered platforms to open accounts in local ones. banks

Binance received approval to work in Kazakhstan

Kazakhstan has shown itself to be a pioneer in the adoption and regulation of cryptocurrency in Central Asia, says Binance founder and CEO Changpeng Zhao. - It further signals Binance's commitment to being a compliance-focused exchange and providing products and services in a safe and well-regulated environment around the world.

Gleb Kostarev, regional head of Binance, called this development a "landmark achievement" for Binance in Kazakhstan.

We are grateful to the Astana International Financial Center for their support and foresight in providing Binance Kazakhstan with this principled approval of the license, he stressed.

Kazakhstan has attracted a significant number of cryptocurrency mining businesses after China cracked down on the industry. However, critics insist the business does little to benefit the country's economy because it doesn't create many jobs, exacerbates growing power shortages, pays little in taxes and transfers profits abroad.^[9]

Fine €3.3 million in the Netherlands for work without registration

The Central Bank of the Netherlands fined Binance €3.3 million. The fine was issued in April for providing services in the Netherlands without registration.

Obtaining a license from the Central Bank of Bahrain

In May 2022, Binance received a license from the Central Bank of Bahrain.

The Category 4 license will allow Binance Bahrain to provide a full range of crypto asset exchange services. Obtaining a license means Bahrain is on track to become the region's leading global cryptocurrency hub.

France is the first of the major EU countries to allow the operation of the crypto exchange

On May 4, 2022, Binance received regulatory approval to operate its cryptocurrency exchange in. France The company is now listed as a registered provider of digital asset services by French stock market watchdog AMF, allowing it to offer both to trade storage and storage services for bitcoin other cryptocurrencies.

Binance is the largest cryptocurrency exchange in the world. According to CoinGecko, in one day the volume of spot trading is more than $14 billion, and the volume of derivatives is almost $50 billion.

France is the first of the major EU countries to allow the operation of the Binance crypto exchange

The move makes France the first major European country to give Binance the green light. In Lithuania, the company is under the supervision of the country's anti-money laundering regulators, and is also seeking registration with the Swedish financial department.

Binance doesn't have an official headquarters, and the company once prided itself on that fact. But the company is now Great Britain Italy Singapore Changpeng Zhao CNBC looking to make peace with regulators after it received pushback from authorities in many countries in 2021, including, and., the CEO and founder of Binance, said in April 2022 that the company plans to create its European office in. Paris

Binance's billionaire CEO called France it "very progressive" in accepting cryptocurrencies.

In our communication with them, we see that they are much more advanced in understanding cryptocurrencies, and they are also much more progressive in their views, "he said in an interview.

France is a very strict regulator. But they have an advanced understanding that comes with it.

In April 2022, Zhao gave a keynote address at a crypto industry event in Paris, where a new accelerator program for so-called "Web3" startups debuted. The company also pledged to invest €100 million ($105 million) in the country^[10]

Obtaining licenses from Dubai and Bahrain

In March 2022, Binance obtained cryptocurrency licenses from Dubai and Bahrain, a key development for the world's largest digital asset exchange, as it sets the stage for serious promotion in the Middle East.

Binance becomes one of Forbes' two biggest owners

In February 2022, it was announced that Binance, the world's largest cryptocurrency exchange, is investing $200 million in Forbes.

That would make Binance one of Forbes' two biggest owners, to be listed on the New York Stock Exchange under the ticker symbol "FRBS." The cryptocurrency company will also win two board seats out of nine.

The move signals the growing influence of the cryptocurrency sector, the sector's first major investment in traditional American media ownership.

Blocking 281 Nigerian Traders' Accounts Following Law Enforcement Requests

In January 2022, the Binance crypto exchange blocked 281 traders' accounts from in Nigeria order to prevent money laundering. In 38% of cases, restrictions were imposed at the request of international law enforcement agencies. Experts do not recommend keeping large amounts on the stock exchange. For these purposes, cold wallets are sold on the market - ledgers, tresors, safepales and others.

Creation of an insurance fund in case of cyber attacks on users' wallets

In January 2022, it was announced that Binance Holdings Ltd. created an insurance fund of $1 billion for its users, amid a flurry of hacks on cryptocurrency trading platforms.

Binance has committed funds to the emergency portfolio since July 2018 and has only recently merged them into one location. The effort is an attempt to address user concerns following a number of cyber attacks, including one on Binance in 2019.

Earlier this month, Crypto.com reported that customer accounts that held about $34 million were subject to unauthorized withdrawals. In January 2022, hackers seized more than $80 million in digital assets as a result of hacking into the DeFi platform Qubit.

2021

Bahraini Central Bank Approval for Services

In December 2021, Binance received the first approval in principle from the central bank of Bahrain to provide services.

Binance has yet to complete the full application process, Chief Executive Officer Changpeng "CZ" Zhao wrote. He said this would be completed "in due course."

If successful, it would be the first regulatory approval for Binance's Middle East or North Africa division. The exchange is trying to expand its regional presence, particularly in the Gulf, as management prepares to set up a potential headquarters.

In December, Binance also entered into a cooperation agreement with the Dubai World Trade Center Authority.

Business closures in Singapore

In December 2021, it became known that Binance will close the unit in Singapore. Binance Asia Services Ltd., the Singapore branch of the world's largest cryptocurrency exchange, withdrew its license application, completing efforts to obtain permission from Singapore authorities that began in 2020.

The Binance.sg platform will completely cease operations by February 13, 2022.

Ban on new phone accounts in China

The world's two largest Bitcoin exchanges suspended registration of new accounts for Chinese users in September 2021, and one will delete current accounts, taking measures to comply with Beijing's latest ban on cryptocurrencies.

Huobi and Binance exchanges prevent traders from using mainland Chinese mobile numbers to register new accounts. Registration is still available to Hong Kong users on both platforms, but mainland China is no longer an option to create new accounts.

Attempts to legalize its activities in key countries

According to the founder of Binance, one of the largest exchanges plans to cryptocurrencies legalize work in some countries. However, the company has not yet decided from which countries it will start.

Binance will undergo licensing, open headquarters in various cities at the request of government agencies. CEO Changpeng Zhao claims that such cooperation will contribute to the fact that regulators will be able to better understand the structure of the cryptocurrency exchange, and for the company, this, accordingly, will reduce pressure.

This company was established in China in 2017, and officially registered in the Cayman Islands. Recently, the company has begun to exert strong pressure on the authorities of different countries, up to the ban on work.

This will contribute to the fact that in the near future this cryptocurrency exchange will conduct its activities in different countries officially.

Dutch work ban

Binance, the world's largest cryptocurrency exchange, has no right to operate in the Netherlands, the country's Central Bank said in a statement on August 18, 2021.

De Nederlandsche Bank (DNB) claims the company failed to obtain the necessary legal registration.

This means Binance does not comply with the Anti-Money Laundering and Terrorism Financing Act, illegally offers virtual and fiduciary currency exchange services, and illegally offers wallets.

A DNB spokesman said that the Central Bank may take action against Binance, but so far there are no details.

HSBC recommends customers in Britain stop paying on Binance

In early August 2021, the banking giant HSBC began contacting customers, recommending that they stop paying to the Binance cryptocurrency exchange, saying that it blocks customers from Great Britain using credit cards to make payments "wherever possible."

"We are disappointed that HSBC has made such a decision and will be pleased to have a dialogue to discuss any issues they have had," a Binance spokesperson said.

The closure of the site and application in Malaysia by decision of the authorities

The Malaysian Securities Commission in July 2021 ordered Binance to disable the exchange's website and mobile applications in the region for 14 days, starting July 26, 2021.

The company should also stop promoting services among local investors and close their access to the Binance Telegram channel.

Stop trading in tokenized shares

In July 2021, it became known that the Binance cryptocurrency exchange will stop trading in tokenized shares - entries in the blockchain that are tied to real securities. You can no longer buy such assets on Binance, and to get rid of them, users were given three months. Global regulators were wary of trading in digital derivatives of stocks.

Barclays bans customers from transferring Binance funds

In July 2021, Barclays Bank banned customers from transferring funds to the Binance crypto exchange. The measure does not apply to the withdrawal function.

Banning activities in Britain

In June 2021, the UK Financial Conduct Authority banned the cryptocurrency exchange Binance Markets Ltd. from carrying out any regulated activities in the country.

Binance must confirm that it has removed all advertising and financial shares, according to the FCA register.

The exchange must also make clear on its website, social media channels and all other posts that it is no longer allowed to operate in the UK.

At this time, Binance is inspected by several agencies in the United States. And Japan's Financial Services Agency issued a warning against Binance, saying it offered crypto services without registration.

US investigation into suspected money laundering

In May 2021, Binance Holdings Ltd. is being investigated by the US Department of Justice and the US Internal Revenue Office.

Officials who investigate money laundering and tax offenses, the sources said, as part of the investigation, information was sought from individuals with knowledge of Binance's activities.

Chainalysis Inc., a forensic firm whose clients include U.S. federal agencies, concluded last year that among the transactions it tested, more criminal activity-related funds passed through Binance than any other cryptocurrency exchange.

2020: Opening an account with Ukrainian bank Ibox Bank

In mid-January 2020, Binance opened an account with Ibox Bank. Thus, the first legal cryptocurrency exchange appeared in Ukraine.

Ibox Bank has become a settlement Ukrainian bank for one of the largest crypto sites in the world, Binance, the Ministry of Digital Transformation of Ukraine said in a statement.

Binance has opened an account with Ibox Bank

After Binance opened an account with a Ukrainian bank, Ukrainians will be able to "freely buy and sell virtual assets," and the company will pay taxes on transactions with crypto assets in Ukraine.

The department also noted that they adhere to their plans to create a legal crypto-asset market and plan to resolve issues of taxation of operations with crypto-assets.

The corresponding bill was submitted to the Verkhovna Rada and has already been approved by the Committee on Digital Transformation. By January 16, 2020, the document is under consideration by other committees of the parliament.

Deputy Prime Minister, Minister of Digital Transformation of Ukraine Mikhail Fedorov says that Binance's work on legal grounds in the country will be the first step towards the development of the cryptocurrency market in Ukraine. He also stressed that employees of the ministry will actively involve Binance experts to form a legislative framework designed to regulate the activities of companies and the circulation of cryptocurrency in compliance with all international norms.

Binance CEO and founder Changpeng Zhao said he was proud to be part of the plans of the Ministry of Digital Transformation of Ukraine and considered the start of cooperation an important step towards creating a civilized cryptocurrency market.

Earlier, Ministry of Digital Development and Binance signed a memorandum of cooperation for the development of the crypto industry in Ukraine. The parties agreed to work together to create a comfortable environment for the development of the crypto industry in the country. It was also reported that the company plans to open an office in Kyiv.^[11]

2019: Hackers rob exchange for $41m

On May 7, 2019, it became known about a major robbery of Binance. Hackers managed to withdraw more than 7 thousand bitcoins from one of the world's largest cryptocurrency exchanges, causing damage of more than $41 million.

Zhao Zhangpeng, CEO of the company, spoke about what happened on the Binance blog. According to him, the exchange was subjected to a "large-scale hack," as a result of which the funds were withdrawn in several stages and transferred to one wallet.

Hackers stole more than 7 thousand bitcoins from Binance crypto exchange

The hackers patiently waited and, as soon as the opportunity arose, carried out well-worked actions through separate accounts... The transaction was structured to circumvent current protections. Unfortunately, we were unable to block the withdrawal until it was confirmed. This operation triggered various signaling mechanisms in our system, after which we immediately stopped the withdrawal of funds, the head of Binance said in a statement.

Attackers managed to gain access to user keys, API codes two-factor authentications and "other potentially important information." Exchange developers do not exclude that hackers can still control some user accounts.

The incident affected only the hot BTC wallet of the exchange, which contained about 2% of the total volume of bitcoins. The other wallets were not touched by the hack.

To cover the damage, the site promised not to use user funds: Binance uses savings from its Secure Asset Fund for Users (SAFU). The deposit and withdrawal of funds on the exchange has been suspended for at least a week while the incident is being investigated.

We will monitor the situation closely. But we believe that with the disabling of the possibility of withdrawal of funds, hackers will not have much incentive to influence the markets, the cryptocurrency exchange said in a statement.[12]

2018

Attempt to hire future SEC chief Gensler as counsel

Binance in 2018 tried to hire the future head of the US Securities and Exchange Commission (SEC) Gary Gensler, the Wall Street Journal wrote in March 2023. The crypto exchange offered him the post of adviser. Thus, Binance representatives wanted to strengthen the company's relationship with regulators.

Moving to Malta

Cryptocurrency exchange Binance, which by March 2018 is considered the largest in the world, announced the move to Malta.

Zhao Changpeng, CEO of the company, told Bloomberg about the opening of Binance's office in the Mediterranean state. According to him, a trading platform will be opened in Malta and agreements will be concluded with local banks that can provide access to deposits and withdrawal services, he said without specifying a specific date.

Biggest cryptocurrency exchange Binance moves to Malta

Malta is a very progressive country when it comes to cryptographic and financial technologies, "Zhao said.

He said that the Maltese government invited him as an expert to discuss the upcoming bill, which is designed to create favorable conditions for the development of the cryptocurrency industry in the country.

In 2017, regulators in China and the United States began to fight cryptocurrency exchanges and companies, as a result of which Binance and other similar projects became difficult to find places for permanent deployment. Zhao Changpeng's company had an office in Japan and tried to obtain a license from local authorities to operate. However, due to disagreements with Japanese regulators, Binance decided to close the office and dissolve the entire state.

On March 23, 2018, the Japanese financial regulator (Financial Services Agency, FSA) issued Binance an official warning due to the fact that the exchange operates without permission.

In February 2018, Binance and six other exchanges received a letter from the Hong Kong Securities and Futures Commission (SFC) demanding the withdrawal of a number of tokens that fall under the definition of securities. Zhao Changpeng told Bloomberg that by March the company continues to negotiate with the Hong Kong authorities, but it is not known what results they can lead to.^[13]

Notes