Binance is the world's largest crypto exchange platform regarding daily trading volume. It got founded by Changpeng Zhao (Chinese-Canadian businessman) in 2017, who also made a high-frequency trading software. The company was formerly based in China but had to move out of the country due to the Chinese government's regulations against crypto. Furthermore, the company's FY 2020-2021 was over $800 million, 45% more than the previous year. So, let us dive into this article to read the in-depth journey of this giant cryptocurrency exchange company.
Note - Binance's current headquarters is in the Cayman Islands, Mahe, Seychelles, and its net worth is more than $90 billion (as of 2020).
Binance – Key Highlights
- Company Name – Binance
- Founded – 2017
- Founders – Changpeng Zhao, Yi He
- Headquarters – Cayman Islands, Mahe, Seychelles
- Area Served – Global, except for the United States
- Key People – Changpeng Zhao (CEO)
- Industry – Software, Fintech
- Products – Cryptocurrency, Cryptocurrency Exchange
- Website – www.binance.com
Binance – Brand Name, Logo, and Tagline
- Brand Name – The company's brand name amalgamates bitcoin and finance. It is a unique brand name that very quickly catches the attention of its customer.
- Logo – Binance's logo is in a unique shape, and it is in bright yellow. It signifies the enhanced vision and confidence of the company.
- Tagline – The company's slogan is 'Exchange the World'.
Binance Founder - Changpeng Zhao
Changpeng Zhao is a Chinese-Canadian entrepreneur and businessman. He founded Binance in 2017, and it is now the world's largest crypto exchange platform. Zhao also served as the CTO (Chief Technology Officer) of OKCoin, and he is a former member of the Blockchain.info developer's team.
Zhao was born in China, but his family moved to Canada in 1980 when he was just 12 years old. He graduated in computer science from McGill University in Montreal, Quebec. Zhao worked as a subcontractor in the Tokyo Stock Exchange as an intern and then started working full-time at Bloomberg Trade book as a developer.
Binance – Cryptocurrencies
Binance has also developed its cryptocurrencies, Binance Coin (BNB) and Binance Smart Chain (BSC). BNB got launched in 2017, and BSC got launched in 2020, and it operates using a combination of proof of authority and proof of stake. As a result, BNB was the third highest market capitalization crypto in 2021, with 21 approved validators.
The company allows its customers to pay fees on its exchange with BNB.
Binance – Legal Status
- United States – Binance got banned in the US, so they opened Binance.US. It is a separate exchange platform designed to comply with all the laws and registered with the US Financial Crimes Enforcement Network. However, the company is still undergoing several investigations regarding tax evasion and money laundering by the Internal Revenue Service and the US Department of Justice.
- United Kingdom – Binance received orders from the United Kingdom's government in June 2021 to stop all activities in the country. The company is not compliant with the anti-money laundering rules, so it had to cease all the operations within a few weeks of the order.
- Japan – Binance got warned by Japan's government (Financial Services Agency) that they were not registered to perform any business in the country in June 2021. They received a similar warning in March 2018, and this was their second notice.
- Thailand – The company, got a criminal complaint filed against them by Thailand's Securities and Exchange Commission in July 2021. They were reportedly operating without a license, and they violet the Digital Assets Business Emergency Decree of the country.
Binance - Competitors
Binance is luckily in one such field that doesn't have many competitors in the market. Various companies are still growing, and it might become something huge in the upcoming future. As of now, some of the top competitors of Binance are as follows:
- Coinbase
- Bisq
- Kraken
- Cash App
- Crypto.com
- Gemini
- Gate.io
- Kucoin
- Bitstamp
- Bittrex
- bitFlyer
Binance – Partnership & Acquisitions
Binance announced its partnership with an Israel-based company, Simplex (payment processor). It helps enable crypto purchase with credit and debit cards, including Mastercard and Visa. The investment is limited to Bitcoin, Litecoin, Ethereum, and Ripple's XRP, and it has to align with the policies of Simplex's local bank.
Binance started providing perpetual future contracts in September 2019, allowing leverage higher than 125 times the value of its original agreements. Additionally, in November 2019, the company acquired the leading Indian crypto exchange platform, WazirX, for an undisclosed amount.
