$81 Million in Bitcoin pre-announced by Binance
Binance is the biggest cryptocurrency exchange worldwide in terms of volume. Based out of Malta, the company has been making headlines in the global market, which has been considered to be controversial. These headlines are the result of structural changes in the company that are imposed by the ever-changing regulation for cryptocurrency. The latest announcement that has made headlines is that $81 Million is Bitcoin Block Trades have been purchased by Binance and will become tradable in the coming months.
This information came from a tweet made through Binance’s Twitter Account. The tweet revealed that 9001 BTC’s are going to be transferred shortly. This will allow the firm to design new reserves for Bitcoin tokens, which will be offered and traded through the Binance Exchange.
Already, industry leaders from other cryptocurrency related business have openly spoken about this pre-announcement from Binance. The first was Pro Chain Capital President, David Twill, who stated: “Within long-established Wall Street norms, its Twitter announcement is unusual, exchanges, such as the NYSE and CBOE, don’t typically broadcast future block trades and don’t announce them via Twitter.
Mr Twill continued his statement by saying, “That’s atypical. With Binance, along with the entire industry, looking toward regulatory compliance and SEC approval, I’m not sure if this announcement was the smartest thing. For regulatory approval, it’s best if crypto industry players conform to already established norms.”
Binance’s Balance in the United States
It’s only been a few months since Binance was hacked, where $40 million in cryptocurrency was stolen but luckily recovered through the Internal Contingency Fund. Since then, Binance and their future endeavours as a company have been awkward. Last month the company revealed that they’d be terminating all trading services in the United States, but then shortly after the crypto exchange changed their mind and announced that they’d be offering “Fiat-to-Crypto” trading services to clients in the USA.
The first announcement was the result of Binance being reviewed by KYC Procedures. The review must’ve not been favourable as the exchange would soon after no longer be able to offer trading services to US Clients. The company, to combat their review, created a new trading exchange that will be maintained through offshore and protected through the SEC Interface. The concern is that with so many new crypto coins starting in the United States, Binance will once again have to prove their services in the market yet, which will be a far more difficult task than it once was.
This new exchange will come as a challenge to Binance because of its Crypto to Crypto business format. This will be the first time that they use the Fiat to Crypto format. There are already multiple exchanges in that blockchain environment that are famous worldwide. If Binance plans to keep the margins they’ve grown accustomed to, then the company will have to offer marginal trading and other unique services.
The recent compromises in Binance’s business structure have been a painful experience for everybody in the company. However, the man to feel the effects the most is the CEO, CZ Zhao. This leader of all these crypto is known for his aggressive tactics and loving nature towards his employees. Mr Zhao stated, “Binance welcomes regulatory involvement within the cryptocurrency space from all governments around the world, as long as there is sufficient clarity to combat the present uncertainty.”