It is considered the largest cryptographic exchange in the world: Binance is the first choice for many investors when buying cryptocurrencies. The company, headquartered in Malta, was not founded until 2017 by Sino-Canadian businessman Changpeng Zhao, and has grown very rapidly over the next few years with Bitcoin and Co. as a result of the boom.
Binance won billions
According to the group, 150 different cryptocurrencies were traded on the exchange at the beginning of 2021. On average, amazing events were done in 1.4 million seconds. The average trading volume is said to be around $ 20 billion. The company is expected to make a profit of about $ 1 billion. According to the numbers, Binance is larger than other well-known cryptocurrencies, such as Coinbase, Kraken or Huobi.
But is Binance’s future in jeopardy and should investors withdraw from the platform and sell their investments to Binance Coin, which is the hallmark of the platform? After all, there are also many investors from Germany who have so far favored the cryptocurrency.
But Binance is now more than ever in favor of regulators and has already partially restricted or even closed down its business in individual countries. Are users’ systems still secure in the Binance software wallet?
No more futures trading for German customers
Binance recently announced that it would also restrict the trading of its customers in Germany. This affects cryptographic products in the area of derivatives and futures. Who around Bitcoin trading with leverage would like to operate through Binance’s futures offer, an option with immediate effect must be sought. In addition to users resident in Germany, the latest measure also concerns customers in Italy and the Netherlands.
Binance said: “As the cryptographic ecosystem continues to evolve globally, we are constantly evaluating our products and working with our partners to meet the needs of our users … At a later date to be announced in the next post, users from these countries will have 90 days to close their open positions. “
Merchants of these products can switch to cryptographic exchanges such as Bybit or Phemex, which also offer similar futures connections. An FTX platform can also be an option. Binance had entered into a strategic partnership with the latter, but it was dissolved again. However, the move to Coinbase does not make sense for traders, as the platform will allow the purchase of Bitcoin and other cryptocurrencies, but will not offer futures trading.
Bafin and other authorities follow Binance
However, the rather vaguely worded report does not reveal the real reasons for the decision. Because these products are really popular with customers, Binance cannot do without them voluntarily.
Rather, the cryptocurrency is subject to increasing scrutiny by various state supervisory authorities. In Germany, for example, this includes the federal financial supervisor Bafin. This had only recently formulated an official warning to Bitcoin, the so-called On the issuance of share codes. For example, Binance had offered to trade Tesla shares through a symbol on its cryptographic exchange. The logo should reflect the actual share price 1: 1 to Binance customers Exchange shares could really buy them on the stock market.
Binance has since removed these products from the European Economic Area Customer Program, according to a July 17 release: , Binance.com will no longer support stock IDs after October 14, 2021. Users who currently have stock IDs can sell or hold them for the next 90 days. After that, all stock IDs on Binance.com will be closed. “
Control from Malaysia to the United States
However, Germany is by no means the only country to have targeted encryption. A few days ago, it was announced that Binance would be banned by the Malaysian state authorities. As early as 2020, the country published a “blacklist” of cryptographic exchanges that do not have the proper license to offer their products. However, Binance did not influence the news at the time. Now, however, the forum seems to be forced to act. Binance must complete the request within two weeks. The deadline expires in a few days.
Other authorities that closely monitor encryption are Italy, Poland, Japan, Thailand, Singapore and the United Kingdom. The store is also monitored in the United States. The most explosive thing was a document published by Forbes magazine. Thus, Binance is deliberately accused of creating an opaque business structure to defraud regulators. The allegations are serious. And the U.S. is probably the most important market if you look at the trading volume of Bitcoin, Ethereum & Co. globally.
Nevertheless, with the exception of derivatives and futures, in Germany it is still possible for investors to buy Bitcoin through Binance. Ultimately, it is up to everyone to decide whether investors should switch to another stock exchange.
Binance Coin loses more than 50 percent in 3 months
The same goes for Buying or selling a binance coin, platform mark. BNB’s stock price is currently around $ 320, 53 percent below the all-time high of just under $ 690 reached in May 2021. Looking at BNB’s price performance over the past 3 months, Altcoin has performed almost worst among the top ten cryptocurrencies in the market – according to value. Nevertheless, the BNB is still ranked fourth in terms of investment, and its market capitalization is currently around $ 54 billion.
However, Binance Coin is one of the best investments by investors last year. Altcoin has grown more than 1,450 percent in more than 12 months. The BNB clearly beats Bitcoin and Ethereum during this time.
Analysts’ assessment of BNB’s price development in the coming years is also on the rise. Wallet Investor believes Altcoin will grow by more than 100 percent by 2022 or by more than 200 percent by 2023. In the long run, analysts even believe that growth of more than 500 percent is possible.
Market observers of the coin price forecast are a little more cautious, but believe the BNB will cost at least $ 1,000 by 2030. Digital coin price experts even expect prices to exceed $ 1,400 by 2028.
If Binance got its problems under control, the BNB could still be worth the investment.