Binance Exchange Issues You Should Know

Share This Post

Binance is one of the world’s largest crypto exchange platforms. However, investors also see some Binance exchange issues that other users should know. Binance is exemplary regarding security measures, and that is not where their problems are coming from. One of the Binance exchange issues is their lack of registration in most countries.

Without registration, Binance is not allowed to continue doing their crypto transactions and participate in those countries’ activities, such as the U.K. and Japan. They have been given warnings not just about their trades but also about their lack of headquarters. The founder of Binance believes that they don’t need a headquarters because they don’t want to have centralized transactions.

Later on, they resolved the issues and had their first physical headquarters. Amidst the rising Binance exchange issues, the company still managed to stay on top holding over 500 different cryptocurrencies. Binance is one of the most reliable and transparent trading platforms today.

There are still other Binance exchange issues they are facing. Before we can get to the solution, let’s look at how these issues begin in the first place. What are the pros and cons of using Binance as a trading platform? Is Binance safe right now? Read the article below to know more about Binance exchange issues.

What is Binance?

Changpeng “C.Z.” Zhao, the founder of Binance, launched it in August 2017. After 180 days, Binance soared to the top and became the largest cryptocurrency exchange platform in the world. Up to this day, it still holds the top position. Amazingly, it can complete up to 1.4 million transactions per second.

Binance has an excellent user interface with simple and advanced features to accommodate both novice and experienced traders or Binance users. It hosts a wide variety of cryptos that are available worldwide. It started its popularity in China, where they have no physical headquarters.

But due to the arising Binance exchange issues coming from the regulators of different countries, they build their headquarters in Malta, Europe. As the platform becomes more popular, Binance exchange issues are also rising.

Pros

  • Low Trading Fees: Fees vary based on the transaction you need to do. Everything that you do inside a trading platform has an equivalent transaction fee. Some trading companies have high transaction fees, affecting your earnings and overall investments. A low transaction fee helps you save money and have more income and investment.
  • Vast Trading Choices: Binance offers different trading options such as peer-to-peer trading, margin trading, and spot trading. With these trading choices, you don’t have to go to other platforms just to complete a single transaction.
  • Lots of Order Types: It offers market order, limit order, stop-limit order, trailing stop order, post-only order, etc. These orders help investors keep their Binance coin safe until a specific condition happens.
  • Professional User Interface: The standard exchange interface looks cluttered on whatever side you look on because of all the cryptos and information. But, Binance made the user experience more convenient by providing a dark mode option. It allows your eyes to focus more on what you want to see rather than seeing everything in bright light.
  • Beginner Friendly: It has a dropdown menu bar that helps new users to navigate easily. You will quickly see your Wallet, Trade, and Account sections if you are a beginner.

Cons

  • Limited U.S. Version: Binance offers more than a hundred different cryptocurrencies worldwide. However, it provides very limited cryptos to the United States. Binance.US is also limited and not available in all states. If you live outside the United States., you have more cryptocurrency choices.
  • Regulatory Problems: It faced many legal and regulatory issues from different countries which results in different Binance exchange issues. This issue caused some investors to transfer their funds and don’t make exchanges. We will elaborate on these issues later.
  • Built-in Digital Wallet is Unavailable: Binance does not have a built-in digital wallet, unlike other trading companies. It recommends Trust Wallet to store your crypto holdings or make any crypto transactions. However, it offers limited support if transfer issues happen. The affected users have to use other digital wallets for their transfers.

Additional Information About Binance

Crypto Exchange Available

Many cryptocurrencies are running on the Binance chain that you can invest your money on. The biggest exchanges that happen in the world occur in Binance. Since it is a global platform, there are lots of cryptocurrency exchanges that can happen here. If you already have an account, the next thing that you should do is choose which cryptocurrency you would like to purchase.

You may now start trading if you have a fund in your e-wallet. For example, if you want to purchase bitcoin, you should know the trend and the possible things that could happen. Bitcoin is highly volatile, which means it constantly changes. Ethereum is faster than Bitcoin when it comes to processes.

For international Binance users, they support a variety of fiat currencies. It includes USD, AUD, EUR, INR, HKD, and GBP. To give you an idea of which is the best cryptocurrency to invest in, here are the top 5 cryptocurrencies traded in Binance as of 2022.

Bitcoin (BTC)

Bitcoin is the first-ever existing crypto asset in the world. It was first introduced in China until international users saw the potential of Bitcoin. It is a digital asset with high liquidity, appealing to crypto investors.

Bitcoin is best for long-term investments. Bitcoin is one of Binance’s popular cryptocurrency exchanges.

Ether (ETH)

Ether is the primary cryptocurrency of the Ethereum blockchain. The Ethereum blockchain is famous for its layer-1 smart contracts, which allow fast transactions without the need for a third party. It comes second to Bitcoin, with the fastest-growing market prices and several investors in the past few years.

Binance Coin (BNB)

The most popular cryptocurrency exchange token globally is Binance Coin (BNB). It was created and launched by Binance. BNB is one of the most significant digital assets in the crypto world partly because it connects to Binance, the world’s number one company, when it comes to digital asset exchange.

Binance Coin is popular due to many reasons. One, the functionalities of the coin drive the price higher. For example, the B.B. vault can cover transaction fees for staking. Just like Bitcoin, BNB can also be liquid. Most crypto exchanges accept BNB, making it the third most valuable crypto globally.

Dogecoin (DOGE)

Dogecoin (DOGE) is known as a meme coin. It is popular even though it does not have any specific use case. Meme coins are volatile, and they can be a good characteristic of crypto assets. Dogecoin’s price jumps up to 20% in a day. However, you also have to be prepared for the decrease since this is the effect of volatility.

Lucky Block (LBLOCK)

Lucky Block has a native coin called LBLOCK. Its goal is to disrupt the online gaming industry with the use of blockchain technology. Fairness and transparency are two of the advantages of Lucky Block when it comes to transactions.

The value of the online gaming space is $230 billion. If you want to earn their token, you must play the game on their platform.

Binance Trading Volume

Binance supports lots of coins. Therefore it has excellent trading volume as well. Binance users can trade their currencies on this platform and gain profit. It is also swift to adopt new coins to the system.

It allows the users to purchase the new tokens at a very low price and gain higher profit. Their trading partners include USDT, ETH, BNB, and BTC. Binance offers various tools for exchanges, including real-time charts with moving averages and exponential moving averages.

Binance users can trade through the app, official website, or the Binance desktop app. You can easily access your account anywhere because of these various tools. You can also see the progress of your coins and your portfolios, including your trade history.

A market order is also available on this platform. You can do a stop order, stop-limit order, limit order, stop-market order, etc. Various trading views are also open. You can select the classic, margin, and OTC views. However, most of these features are not available in the United States. because they have Binance.US as the leading platform. 

Trading Fee

Binance has a trading fee of 0.1% per transaction. If you choose to pay fees using Binance Coin (BNB), you will receive a 50% discount on a particular transaction. Binance offers some of the lowest prices among its competitor platforms, so many investors choose Binance. Withdrawal fees depend on the digital currencies that you have.

If you are going to withdraw Bitcoin, the fee is 0.0005 BTC. In Ethereum, the withdrawal fee is 0.005 ETH. Binance charges are generally regarded as lower fees compared to other companies.

Another advantage of Binance is the transfer limits. There is no limit when it comes to the amount that you want to deposit. Moreover, there will only be a limit on withdrawal if your account is not verified yet.

Verification is essential if you want more freedom when using the platform. It will put you as a level two user. You should provide your full name, gender, country, a passport photo or a government-issued I.D., and a selfie with your passport.

Security

Binance offers complete security from day one. The platform has strict protocols to secure the user’s funds and data. It has a real-time monitoring and 360-degree management system. Binance ensures the safety of the users by finding more ways to secure their privacy and crypto-assets.

The platform also provides secure storage where the user funds are stored in an offline facility. It prevents hackers from accessing your data online. The real-time monitoring analyzes all withdrawal transactions, conversion to fiat currency, email address changes, password reset, and two-factor authentication reset.

If the management system detects unusual activities, it will suspend the withdrawals or any transfer for a minimum of 24-48 hours or until the transaction is confirmed.

Binance observes advanced security measures. It includes threshold signature schemes (TSS) and multi-signature. With their advanced security features, they can protect the clients by encrypting the data in their storage.

Furthermore, moving data is protected by end-to-end encryption. It makes sure that only Binance can access its customers’ given information and order. As a user, you will also need a follow some sign-in protocols that will enhance your safety.

Binance asks for two-factor authentication through SMS or email. OTP can also be an option to verify your login. Advanced user access controls include I.P. and wallet address safelisting, device management, and API access control.

If any suspicious logins or transactions are using your account, you will receive a security notification via email or SMS. You need to verify whether it is a legitimate Binance account before responding. Do not give your password or any of your login credentials.

Customer Reviews

According to the users, the Binance customer support team is not responsive to queries. Due to the number of international users, your questions may take some time to be addressed. The Binance customer support team will respond to you via email since they do not have a live chat yet or a phone number to call.

Binance offers many video tutorials, articles, and FAQs to help its users quickly solve their current problems. The exchange happening inside the platform has continued to rise in the past year. It made the demand and questions explode as well. Nevertheless, Binance makes sure that they will address the problem carefully, offering not a fast but an effective solution.

They don’t just hire anybody to be part of their team. Binance carefully selects and trains all of its staff. Since many technicalities are involved in the process, not all applicants can pass. So, it will sometimes result in fewer people and fewer responses to queries.

To make sure that your concerns are received, make sure that you will submit the ticket to the correct email address. They also have a Twitter account where you send a direct message. Lastly, you can send your concern to the chatbox at the bottom right corner of their website. Overall, many investors still recommend Binance because of its good reputation.

Since not all concerns are solved immediately, more Binance exchange issues may arise. These issues have caused other countries to remove Binance from their systems. Below are some of the Binance exchange issues that you should know. Let’s also look at some actions that Binance did to solve them.

Binance Issues

Here are some of the topmost Binance exchange issues has faced over the years.

Issue with Hackers

Hackers are one of the many problems of the crypto world. Fortunately, hacking a Binance account is not easy. The Binance chain has been recognized as one of the safest trading industries in the world. It has servers all around the globe, so it is impossible to attack the system quickly. If one server is down, many other servers will manage the transactions.

Binance has been attacked by hackers before, similar to other exchanges. Last 2019, it was reported that hackers stole at least 7,000 BTC, which is equivalent to $40 million in fiat currency during that time.

The hackers stole from the “hot wallet” of Binance, which holds 2% of their overall Bitcoin currency. Binance ensured that no user funds would be affected, so they covered all the loss BTC. This action gains so much trust from existing users to new ones.

Because of its high-end security, the reported breaches are not the top issue of Binance. Nevertheless, they encourage the users not to open their accounts on different devices that are not their own.

Do not click links from unofficial Telegram, Twitter, and email because it can phish your account and get your data. Binance recommends logging in only using the app or the official Binance website.

Issues with Regulators

Binance aims to have decentralized exchanges. Therefore, they do not want to build a physical headquarters, just like how Bitcoin started. However, it caused much commotion in different countries where users use Binance.

Regulators are having a problem with Binance not having its physical company and still organizing its operations. Because of this issue, the primary domain of Binance is not available in the United States. The regulation problems also led to Binance exchange issues.

In June 2021, Binance received a warning from Japan’s Financial Services Agency. The United Kingdom’s Financial Condict Authority warned not to continue their exchange until they had a physical headquarter in the same month and year. In July 2021, Italian securities regulator Consob also announced that Binance is not authorized to offer investment activities.

According to Changpeng Zhao, CEO of Binance, they do not want to build a physical headquarters and a single person holding all the operations because they want to be a decentralized exchange platform. During the surge of all the warnings, some payment channels are also on hold. Even though a bank account is in the U.K., users cannot send to do transactions in Binance. Aside from the payment disruptions, users cannot regulate futures contracts with the company.

To continue providing excellent service, Binance decided to build its headquarters in Malta, Europe. They chose the place because of its safety and the growing number of investors in Europe. Binance is now a centralized exchange platform, but it can still host decentralized exchanges like Ethereum smart contracts.

Issue with U.S. Users

The issue with Binance and U.S. investors started in 2019. But it was November when the primary domain completely stopped U.S. investors from using it. It led to the creation of Binance.US, which has its CEO and company, BAM Trading Services. It was a result of another crypto exchange called BitMEX. It is violating the know-your-customer laws, among others.

Binance denied the accusation of the United States about tax fraud, insider trading, and money laundering. These issues caused a total separation between the United States crypto users and the Binance central platform.

According to the crypto traders and crypto investors in the United States, it is possible to access Binance through VPN. After three months, the head of the Office of the Comptroller of the Currency, CEO Brian Brooks quit, and Binance.US assigned Brian Shroder as the new CEO.

What is Binance US?

Binance.US is another platform that has low fees and offers many cryptocurrency exchanges. However, Binance.US has lower security features than the main Binance platform. When the leading platform stopped accepting U.S. investors, the sister of the Binance platform was born.

The Wall Street Journal and Changpeng Zhao reported that the Securities and Exchange Commission is presently investigating the connection between Binance and Binance.US. Since Binance is calling it a partner company. Many speculations are rising on why they got separated in the first place. Binance exchange issues also arise in the two platforms.

Binance.US now offers up to 65 cryptocurrency exchanges for investors to trade with low fees. It also provides easy access to beginners. Advanced traders also have an option to get the best features from these trading platforms.

Pros and Cons of Binance.US

Pros

  • Offers lower fees
  • If you pay using Binance Coin, you will get up to 25% trading fee discounts.
  • Videos and article resources are available
  • The identity confirmation procedure for security
  • You can easily trace your crypto task

Cons

  • Not all states can access it yet
  • It has a minimum trading amount of $10
  • The website can be challenging to use if it’s your first time
  • Less transparency and security compared to Binance
  • It has a history of scrutiny and regulatory issues
  • Less customer support

Difference Between Binance and Binance US

Changpeng Zhao led the creation of Binance in Chian in 2017. The Binance.US made its appearance in the United States last 2019. Both offer almost the same accessible features. However, they have different interfaces and numbers and amounts of cryptocurrencies. Binance is available worldwide, while Binance.US is just available in some states in the United States. Users from the United States cannot buy crypto from the international Binance firm.

Both firms are still silent about the issues and the association between them. They both do not respond to any of the clarifications. But one email was sent by a spokesperson from Binance.US, which says that Binance and Binance.US are different companies. However, Binance.US uses the licensing software, wallet technology, and trademarks of Binance.

Conclusion

Despite the Binance exchange issues, it is still considered the safest and world’s number one trading platform. Binance faced many regulatory problems with different countries, but later on, it was able to resolve them. It also offers low fees, so it can encourage more investors to invest in the coin that they prefer.

It offers fee discounts if you use the BNB. Another good thing about this platform is its high-end security. Your funds are guaranteed safe under its care. The mobile apps and website are available and accessible for users anywhere.

References:

Related Posts

The 5 Safest NFT Marketplace to Buy & Sell in 2022

This guide will show five of the top hottest NFT marketplaces you need to try and sell your digital assets in 2022. We will also answer some of your burning questions about the NFT marketplace.

NFT in the Wine Industry: Why the Sudden Obsession with NFTs

Anything under the sun that is digitized can be an NFT. But is an NFT wine possible? Find out why the wine industry is suddenly obsessed with NFTs.

Why Are CryptoPunks so Expensive

One of the oldest NFTs is Cryptopunks. There are 1000 collectible characters on Ethereum. On the other side, their prices are extremely high. Discover why their prices are so expensive in this article.

Everything You Need to Know About Blockchain Advantages and Disadvantages 

Blockchain technology works to secure the integrity of your data. Most importantly, it increases trust and brings cost savings across the network.

Proof of Work vs. Proof of Stake: Pros and Cons

Wondering what pros and cons do the proof of work and proof of Stake possess? We've you covered. This guide covers each aspect of the subject you need to know.

Top 7 Rug Pull Scams in DeFi and How to Avoid Them

DeFi space has revolutionized the financial services industry by eliminating the middlemen. However, as strong is the potential and rewards, as strong are the risks regarding frauds and scams.