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August 18, 2021

The Transformation of Binance

Crypto is entering a very different new stage of development. Which means new challenges and new solutions.

Blockchain - the foundation of crypto - is gaining recognition fast. It is being used in elections, government projects, big businesses, etc. Cryptocurrencies, on the other hand, are in a quite complicated place. On the one hand, they are being recognized as legal tender and praised as a revolution of global finances. On the other hand, crypto is being examined by regulators more closely than ever before.

It is very interesting to observe how the major crypto enterprises deal with this new environment. Binance provides the most interesting example of adapting and thriving.

2-stage (2)

The leading global exchange was criticized by conservatives and regulators in general for many reasons, ranging from financial risks to the lack of accountability. And here are the latest steps that Binance took to fix the situation.

  • On July 16th, Binance introduced a new rule: all new users were limited to maximum leverage of 20x. Later, the exchange extended the rules to all the accounts opened within the last 60 days. This new ruling was made in order to limit unnecessary losses and make crypto trading safer. Binance was the first exchange in the world to introduce this policy, and many followed suit.

  • “CZ” - the CEO of Binance - confirmed that Binance is on its way to becoming a regulated financial institution. It means a lot of things. There are obvious tasks. such as ensuring local licensing and compliance, which can only be beneficial for the company. It is also the first step to opening regional headquarters to develop constructive communications with national regulators.

  • Binance also made a difficult, yet necessary decision to scale down their derivatives products offerings in several countries: the Netherlands, Italy, and Germany. Later the company applied restrictions to the Hong Kong users as well. No other exchanges took these steps before.

  • Another recent update limits the new API key creation to only the verified users. This way the platform ensures that it provides a secure and transparent environment for trading and that it is in compliance with the rules of the industry.

3-infrastructure (2)

Aside from these great updates, Binance also changed its whole system and infrastructure.

  • The company makes sure that it can handle the rapidly growing demand for its services by releasing Online Chat 5.0 and further improving the CS system. Its AI bot also helps the users to resolve their issues fast by using keyword detection.

  • Binance also expands and improves its user-oriented resources: self-service tools, tutorials, FAQs, etc.

  • Its Customer Service team grew three times in size and now has more agents than ever.

4-users (2)

Finally, Binance made the interests of the users its top priority.

  • The exchange set strict requirements for using the platform and established new industry standards. It also has strict insider trading policies, Secured Asset emergency fund, that is being used to keep user assets secure, as well as strong listing standards.

  • The company encourages responsible trading and limits riskier products.

  • Binance also cooperates with law enforcement agencies to guarantee the safety of the users’ funds and keep the platform clean and secure.

What do you think about this brand new state of Binance?

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