Recently, the cryptocurrency exchange has had problems in Australia.
The Binance cryptocurrency exchange has become by far the largest cryptocurrency trading venue in almost 6 years. However, during its rapid rise, the company has often traded integrity for rapid growth. License withdrawals, lawsuits, and other critical attacks on the company are now piling up, suggesting a Binance crash soon.
In an article published about two weeks ago, details about the crypto exchange are revealed. Among other things, these were payments from the terrorist organization Hamas, the then CCO Samuel Lim is said to have supported or at least allowed these processes to take place.
These reports were just the culmination of a history of dubious business practices that have come to light on the crypto exchange. A major factor in Binance’s skepticism is the fact that the company appears to have no official physical headquarters in any country in the world.
What are the Latest Crypto Exchange Concerns?
Recently, the cryptocurrency exchange has been having trouble in Australia. The Australian regulator ASIC requested the suspension of the derivatives license for Binance Down Under. The platform must stop trading derivatives before April 21. However, it is still possible to trade cash.
Information revealed by Bloomberg adds to Binance’s problems. As reported on April 5, the Virtual Assets Regulatory Authority (VARA), the entity that oversees cryptocurrency activities in Dubai, has asked Binance to provide more information on its trading requirements, in its efforts to tighten regulatory controls in the emirate.
Additionally, the US Commodity Futures Trading Commission (CFTC) recently filed a lawsuit against CEO Chanpeng Zhao (CZ). Especially in Western countries, which are still the most important places for the international financial market, Binance is increasingly getting into trouble.
The recent bankruptcies of Silvergate and Signature Bank left Binance.US without banking services, relying on intermediary banks to store funds on its behalf, according to the Wall Street Journal, citing “people familiar with the matter.”
Consequently, as informed by the WSJ, Binance.US clients have been affected by the lack of a direct bank. In a recent status update, the exchange said it was “transitioning to new banking and payment service providers over the next few weeks,” adding that some USD deposit services would be temporarily affected during the transition.
Will Binance Fall in the Next Months?
Based on the abovementioned, the impacts for Binance are getting closer, and the bears or harsh critics of the platform expect that the exchange could suffer a fate similar to that of FTX in the coming months.
It is worth mentioning, though, that Binance is by far the largest exchange on the market, and probably has significantly larger financial reserves than FTX. It could well be that Binance continues to struggle with license withdrawals and has to survive various lawsuits. Despite this, it could still work without a hitch.
The advice to investors is to avoid, by all means, leaving large sums of cryptocurrency or FIAT money on Binance. It is always best to use one’s own wallet (“Not your keys, not your coins!”). Whether to continue using Binance to buy and trade is up to each investor.
By Audy Castaneda
