Dec 24, 2018 04:36 UTC
Mar 19, 2019 at 05:41 UTC
Industry Executive: Binance is The Most Trusted Crypto Exchange
The CEO of FX hedge fund Three Arrows Capital, Su Zhu has recently said in a tweet that Binance, the largest cryptocurrency exchange in the global market is also the most trusted by investors inside the digital asset industry.
The tweet read,
Interesting that @binance, a lightly regulated exchange, has also become the most trusted crypto exchange among actual users. You cant build trust by acquiring govt licenses/rubber stamps. https://t.co/1OXkskgHAr
— Su Zhu (@zhusu) December 23, 2018
It is interesting to note that the exchange is “lightly regulated”. In most countries where cryptocurrency exchanges are legal, they are also heavily regulated to prevent cyber crimes such as fraud, identity theft, money laundering and using digital assets to buy illicit goods, especially drugs. As such, it is a logical fallacy that investors trust the least regulated one that seemingly has the highest risk of being vulnerable to cybercrime.
Binance’s main platform exclusively allows cryptocurrency-to-cryptocurrency trading, but there also exists a strictly regulated fiat-to-crypto exchange that currently operates in Uganda but is soon expanding to Singapore with support form the Singaporean government.
Malta is famously crypto-friendly due to its relaxed regulations regarding cryptocurrency, which has certainly benefitted Binance’s growth in the local market. However, Malta is a member of the European Union (EU) and as such, has extremely strict financial regulations that Binance and other exchanges have to abide by.
Perhaps the primary reason why Binance has gained the trust of traders and investors alike is due to its heavy emphasis on security and investor protection. It has the privilege and pride of calling itself among the select few cryptocurrency exchanges alongside Coinbase as not being the victim of a single security breach or hacking attack since it opened. Binance also keeps an excellent track record when it comes to keeping a strong communication between the firm’s executives and the community.
the CEO of Binance, Changpeng Zhao, is well-known for keeping the community well-informed regarding updates, changes, and announcements about the exchange. It is a common occurrence for the company to provide hour-by-hour updates on social media when the network is under maintenance or being updated for security reasons, ensuring that the investors and traders understand that their funds are still safe in the hands of Binance.
In October, Wei Zhou, Binance’s CFO said,
“By working with Chainalysis, we are able to continue building a foundational compliance program that enables the next phase of our growth. Our vision is to provide the infrastructure for a blockchain ecosystem and increase the freedom of money globally, while adhering to regulatory mandates in the countries we serve.”
It is, therefore, no false claim that the cryptocurrency exchange Binance stands to be the most trusted in the industry among investors. Amidst concerns about the bearish market and the unending barrage of cyber attacks, hacks and security breaches against cryptocurrency firms, only a few firms have managed to keep their head above the water and gained the community’s trust at the same time.