![]() ![]() “Binance’s struggles underscore a fundamental challenge faced by the crypto industry,” says Charles Storry, head of growth at the DeFi project and on-chain index fund provider Phuture. Crypto evangelists fear its success is an existential problem for an industry that champions decentralised finance where no one actor or entity holds too much sway. ![]() In the US alone, financial watchdogs have accused Binance of illegally serving American customers, inappropriately controlling clients’ assets, and disregarding compliance and anti-money laundering standards.īinance’s size isn’t just a problem for regulators. This is most likely due to being offline or JavaScript being disabled in your browser. You are seeing a snapshot of an interactive graphic. Its size meant it became a clear target for regulators and lawmakers seeking to ensure the broader financial markets would never be contaminated by a crypto exchange that had become “too big to fail”. “When collapsed, everybody turned to Zhao as the potential future saviour for the industry.”īut while the prices of major cryptocurrencies like bitcoin stabilised in dollar terms after FTX’s collapse, Binance has struggled. “Many people looked at Sam Bankman-Fried to be the leader of the industry and save it in the face of regulators,” says Charley Cooper, a former chief of staff at the Commodity Futures Trading Commission. If Binance could ride out the regulatory onslaught that followed the FTX implosion, it would be the go-to venue for trading crypto tokens, and Zhao could establish himself as the “acceptable face” of crypto, a section of financial markets that many still regard as the Wild West. The collapse of its biggest rival left Binance the undisputed leader in digital assets, controlling more than half of the fast-evolving cryptocurrency market by the end of 2022. On November 10, one day before his crypto empire filed for bankruptcy, Bankman-Fried tweeted his competitor: “Well played you won.” Sam Bankman-Fried, co-founder of Binance’s biggest rival FTX, went to Zhao in November last year hoping the Binance chief would bail out his own exchange. CNBC's MacKenzie Sigalos contributed to this report.As 2022 drew to a close, Binance co-founder and chief executive Changpeng Zhao appeared to have the world at his feet. Bloomberg reported in June that the SEC was investigating whether the 2017 token sale amounted to a security offered that should have been registered with regulators. ![]() There's a circulating supply of about 160 million BNB out of a total maximum supply of 200 million, according to CoinMarketCap. On its website, the company says people can "use BNB to pay for goods and services, settle transaction fees on Binance Smart Chain, participate in exclusive token sales and more." Areas where BNB can be used, the site says, include payment, travel and entertainment. Like all of the major crypto projects and companies, Binance developed its own currency. A day later, Binance backed out of the deal, stating that FTX's "issues are beyond our control or ability to help." Personal Loans for 670 Credit Score or LowerįTX then faced an immediate surge in withdrawal demands, and Binance stepped in with a non-binding agreement to acquire the company as part of a rescue plan. Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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