A lot of people have been investing in cryptocurrencies that have just entered our lives lately. In this case, the fact that large companies gradually share these investments and even countries accept these currencies has a big impact. However, people have started looking for secure platforms where they can trade crypto to make safe investments. Providing these platforms was a new area for investors as well. Binance is also one of these platforms and one of the most competitive environments for tracking cryptocurrency trading. If you’re new to this field or know something, it’s probably the easiest and cheapest way to trade cryptocurrencies.
Binance accepts users from all over the world and receives very positive comments from crypto users. On the other hand when it comes to money, companies in particular need to be very careful. Currently, there is an investigation in Biance. In this article, you can find details of the Binance investigation.
What is Binance?
Binance is a Hong Kong–based cryptocurrency exchange established in July 2017 by developer Changpeng Zhao (aka CZ). Zhao’s company, Beijie Technology, established the exchange following a $15 million ICO.
Investors who participated in the ICO received Binance Coin (BNB), which can be used to exchange cryptocurrencies and pay fees on Binance. As Binance grew in popularity, the coin’s value increased. Recently, the exchange has also collaborated with third-party companies like Simplex to facilitate premium credit card and wire transfer transactions of cryptocurrencies.
Why Binance goes under investigation?
Recently, some news have been talking about the Binance investigation. According to The Verge, officials investigating money laundering and tax evasion are explicitly looking into Binance.
The Binance investigation seeks to determine whether Americans were able to conduct illicit transactions on Binance by purchasing derivatives linked to digital tokens. Residents of the United States can only buy these from CFTC-registered companies. Binance had just planned to register as a broker with the CFTC and had yet to do so.
The company has spoken out for this Binance investigation. Binance has stated that certain legal requirements are taken very seriously. It claims to have a strong enforcement program in place that integrates anti-money laundering principles as well as techniques used by financial institutions to identify and investigate suspicious behavior. Binance was also listed in the answer as having a long track record of supporting law enforcement agencies all over the world.
So Is Biance Safe Enough to Use?
Although the Binance investigation continues, nothing has been finalized at this time. Binance is regarded as a secure exchange that provides user account security through the use of Two Factor Authentication. Binance was the victim of a massive hack on May 7, 2019, which resulted in the theft of 7000 Bitcoins from the exchange. Binance, on the other hand, has confirmed that all losses will be protected by the disaster insurance fund (aka SAFU).
When we consider it and look at Binance critically, the pros far outnumber the cons. This is more than any of their rivals may say. The exchange’s low fees, coupled with the team’s demonstrated knowledge of how to develop a trading platform, are enough to propel it to the forefront of the market.
It’s no surprise that the service was a success during the first few months. Add to that the opportunity to provide a truly global service outside of the control of the Chinese government, and there isn’t anything that can stop Beiji Technology.
It’s frustrating to have such little fiat assistance, but it’s understandable in most cases. Binance, on the other hand, is continuously introducing new options, with EUR and GBP trading pairs already open.
However, as in the case of the Binance investigation, it is very important to ensure the safety of users and investors. Because the field of cryptocurrencies is developing day by day.