Binance to seek localized regulatory licenses
In a Blog post today on Binance website, CEO, CZ wrote about the Binance journey and growth as well as successes since it started in 2017. As he noted, Today marks a special day for Binance as we celebrate our 4th anniversary. But more importantly, today is the day I’d like to give a big “thank you” to all of our community for choosing to share your crypto journey with us.”
CZ provides an update on Binance and explains that Binance has evolved from a simple crypto exchange into a vibrant crypto and blockchain ecosystem. As he states, “The system includes key infrastructure pillars such as Trust Wallet, CoinMarketCap, the NFT marketplace and so much more. We have also invested in promising projects and organizations, most notably the community-driven Binance Smart Chain which now has the world’s largest transaction volume in the DeFi space.
He also highlights major achievements in 2020, one of which is the NFT marketplaces. He explains, ” Many NFT drops selling out within seconds and becoming the world’s largest NFT platform by traffic since the platform launched last month. At the same time, Featured by Binance, an NFT marketplace on Binance Smart Chain and go-to destination for users looking for a decentralized, non-custodial NFT platform, has empowered more than 2,000 talent creators to mint NFTs—many for the first time.”
He also mentions that BUSD stablecoin adoption is at an all-time high, with the total market cap reaching a staggering $10B as of earlier this month, up from $1B in January 2021. Today, BUSD is a top 3 regulated stablecoin that follows strict compliance standards, including being green-listed by the New York Department of Financial Services (NYDFS).
He adds, that Binance P2P. has seen weekly volume growing 10X since 2020. Today, Binance P2P supports more than 350 payment methods, giving users more choice and access when it comes to crypto. While Binance Earn which help users grow their existing crypto assets, and since January 2021 alone, the total value locked (TVL) on Binance Earn has grown 5X to $20B.
In terms of Binance Marketplace, Binance Pay, a feature that lets users pay and get paid with crypto, recorded more than 1.8M users within the first five months of launch, and they collectively conducted $13.5M in transactions. Meanwhile, Binance Card, a visa debit card from Binance, recorded more than $388M in transactions.
Binance Institutional. Binance continues to attract VIP traders, trading firms, hedge funds, market makers, brokers and other market participants. The number of institutional users increased 1.4X over the past year, while our Broker Program has experienced a 21.4X increase in trading volume and 46X growth in active users during the same period.
Binance Charity. In total, Binance Charity has distributed more than $15M in donations from 2,300+ donors to 70+ partners across 20+ projects, as part of ongoing efforts to use blockchain technology and crypto to help those who need it most. This year, Binance Charity officially reached the 1M end-beneficiaries mark, thanks to generous donors and partners from around the world.
He mentions as well how Binance has worked to not only protect users funds, when he notes,” We make every effort to protect our users’ funds, including helping Binance users and Binance Smart Chain community members track and recover missing funds. In addition, we have a Secured Asset Fund for Users (SAFU) to ensure user assets are protected, even in emergency situations but also fighting Bad Actors. He states, ” We also work actively and collaboratively with law enforcement agencies to combat financial crimes, apprehend bad actors and solve cybercrimes. By doing so, we can help clean up the crypto industry and discourage bad behavior, benefiting crypto users across the industry.”
The statements come at a time when Binance is under heavy regulatory scrutiny despite all efforts being made on behalf of Binance to grow its compliance team. In the Blog post as part of his future outlook, CZ clearly talks about regulatory issues in the quest for Freedom of Money. As he notes, ” We are proud to be at the forefront of this financial revolution and appreciate that many of you share our vision to increase the “freedom of money”. Clear regulations are critical for continued growth. In order to make crypto safe and sustainable for all, the Binance team is working to Grow our international compliance team, Expand our already robust compliance partnerships and localize our operations and business to comply with local regulations. To that end, we are committed to continuing our work with regulators and policymakers to shape policies that protect our users, encourage innovation and move our society forward.”