Seems like the world’s governments are taking turns whacking on poor Binance. But I mean it is the largest crypto exchange out there so it makes sense that if the governments want to send a message, they will totally go against Binance right? But what is the hidden message these governments and their supposed “regulators” are trying to send across? From Japan to UK to the US to Italy and plenty of other countries seem to be targeting Binance and it seems for various reasons. Some of which are not even related to the Binance Exchange website (where most of us do the trading at)! And how about the banks starting to block transfers to Binance for their users. Out of nowhere, banks have suddenly become “concerned” about the welfare of their customers and it seems that it is very particular in the UK. I mean we will never know what is exactly going on behind the scenes but all these seems very well planned and well timed, don’t you think so? I wonder what kind of “watchdog” these authorities are but it smells very fishy to me.
So the most important question would be how would it affect us – the retail users? For me, I am going for the wait and see approach. The Singapore authorities although very curious, do not seem to be taking any action against Binance for the time being. For those in the UK and other countries might want to think of transferring at least a portion of their portfolio off Binance. Especially those cryptocurrencies which you do not think you will be trading that often. The Binance trading fees are probably the lowest out there. However it looks like even institutional investors are a bit hesitant to do trading in Binance. Take a look at this article by FT. There are several relatively safer exchanges like Kucoin and Coinbase. There doesn’t seem to be any regulatory bodies targeting these crypto exchanges as of yet. And there is always Crypto.com if you a mobile user. Note that I do not have any experience using Crypto.com so please do your own research on this platform. But I have heard good things though. And their online presence rather big so I am sure they have at least some standing in the crypto markets.
However if you ask me, I think the main reason why Binance was targeted is because they are the biggest crypto exchange out there. And not because of any major wrong-doing on their part. I mean if you compare Robin Hood and Binance, I say Binance is a much safer platform than Robin Hood. And with even better fundamentals as well. Even the 2019 Binance hack, Binance had covered all those affected in full. And till now, all these government regulatory bodies have no given a reason on why they are targeting Binance. The UK side was that like false advertising or something along that line and it is not even the exchange platform. The worse are the banks if you ask me. They have not even given any legit reason as to why they are blocking fund transfers (or limiting the amount) to Binance. Their excuse was that they discovered a number of scams related to crypto exchanges. Again very fishy indeed. But I am guessing this is all expected. When you are the top dog you will surely get a few target crosses on the back of your head.
And as it is currently a bear market, moving some of your cryptos out of Binance and to lending platforms is also a good idea too. You can earn better interest rates on your cryptocurrencies. However I still believe Binance will survive all these and maybe come out even stronger.