Whose exchange is Binance

The easiest way to trade cryptocurrencies is with the help of centralized platforms. On them, novice users with insufficient experience can easily sell or buy digital assets. Binance exchange is the leader in terms of trading volume for not the first year. Its name is on the lips of most readers, but in 2023 the attention is largely due to negative news. This piece talks about the legal aspects of the platform, the founders and their financial status. Readers will learn whose exchange Binance is currently and what difficulties accompany the platform in recent months.

A brief history of Binance

The service from the very beginning attracted the attention of the cryptocommunity. On the one hand, Binance was rapidly increasing in popularity, on the other hand, it was launched by Changpeng Zhao. The permanent head of the service is a media personality and often takes a categorical position in interviews.

When created

Binance has been operating since 2017. The creator was Changpeng Zhao. The permanent head of the exchange is known under the short nickname CZ. The businessman has gained a wealth of experience:

• In 1989, as a teenager, he moved with his family from China to Canada.
• From 1995 to 2000, he studied programming at McGill University (Montreal).
• From 1996 to 2013, he worked in the development department of the Tokyo Stock Exchange, Bloomberg’s Tradebook, and Fusion Systems.
• In 2013, he moved to Shanghai and joined the cryptocurrency company OKCoin, one of the largest in China at the time. CZ took the position of CTO there.
• In 2015, he joined Blockchain.com.

To launch Binance, an ICO and pre-sale of BNB cryptocurrency were held. In the end, $15 million was raised. After that, the site quickly became one of the largest cryptocurrency platforms in the world.

The Binance exchange belongs to the centralized exchange type (CEX). This means that it is managed by a development company.

A year after the launch of the project, in 2018, CZ entered the list of the richest people in the field of cryptocurrency according to Forbes with a fortune from $1.1 to $2 billion. The estimate is approximate, since the head of Binance keeps personal capital in digital currencies.

1

ByBit

5020 $
bonus for new users!

9.8

VISIT Read Review

ByBit provides convenient and safe conditions for cryptocurrency trading, offers low commissions, high level of liquidity and modern tools for market analysis. It supports spot and leveraged trading, and helps beginners and professional traders with an intuitive interface and tutorials.

2

Binance

Earn a 100 $ bonus

for new users!

9.5

VISIT Read Review

The largest crypto exchange where you can quickly and safely start your journey in the world of cryptocurrencies. The platform offers hundreds of popular assets, low commissions and advanced tools for trading and investing. Easy registration, high speed of transactions and reliable protection of funds make Binance a great choice for traders of any level!

Where founded

Initially, the platform appeared in the founder’s homeland – in China. However, after the completion of the ICO, the exchange faced domestic political and economic pressure. Later, Binance turned into a cross-border holding company, and then once again restructured into a new legal entity. At different times, the parent companies were registered in China, Malta, Cayman Islands and Seychelles.

Whose exchange Binance is on today

On the principle of the holding company, the company structure includes the headquarters and additional legal entities. Their addresses and names often change. This is due to amendments in local legislation or the withdrawal of the exchange from certain regional markets. One of the few things that remains unchanged is the management of Changpeng Zhao.

About the owner’s condition

According to Forbes, CZ is ranked as the 187th richest person on the planet at the end of 2023. Zhao is also among the 20 crypto billionaires with the most significant personal capital – $10.9 billion. In an interview with Bloomberg, the CEO of the Binance exchange Changpeng Zhao said that he does not own fiat and stores his fortune in digital currencies. This affects the rough estimate of capital. In terms of US dollars, CZ’s fortune has shrunk 6 times in the last year.

About the work of the exchange

In the 6 years since the platform’s inception, trading volumes have grown to huge proportions. In 2023, Binance is ranked number one in two major areas:

• Spot trading – $3.91 billion.
• Derivatives trading – $12.25 bln.

However, trading volumes have been declining systematically over the past year. On the spot, they have fallen from $19 billion (averaged in October 2022) to $4 billion (September 2023). No historical data on derivatives turnover is published.

Legal status of the company

The exchange often faces disagreements on the legality of its activities on the part of local regulators. The management is engaged in expansion into new markets, as well as strengthening the existing ones. At the time of creation of the material, the country of the Binance exchange according to the documents is considered to be Seychelles.

In 2023, Binance has 19 active licenses and permits for operations in different countries. In them, the exchange acts through subsidiaries. However, they are managed by the parent body (headquarters).

Where Binance is registered and in which jurisdiction it operates

In countries with the presence of subsidiaries, the exchange is particularly carefully regulated. The data on the work permits received in September 2023 – in the table.

Where the headquarters are located

According to the information on the website, the head office is located in Seychelles. Binance is primarily registered in this jurisdiction. Basic information about the parent company in September 2023:

• Name – Nest Services Limited.
• Registration number – 238045.
• Chief ExecutiveOfficer (CEO) and Owner – Changpeng Zhao.
• Co-founder, head of marketing strategy (CMO) – Yi He.
• Chief Financial Officer – Guaning (Heina) Chen.
• Theregistered office is House of Francis, Room 303, Ile Du Port, Mahe, Seychelles.

The countries and jurisdictions of the private elements of the Binance structure change frequently. However, as a rule, founders choose the most loyal regions with lenient legislation in the field of finance, cryptocurrency and offshore operations.

In such a case, as a rule, they register in the Cayman or Seychelles Islands, Malta, Mauritius, the Isle of Man (UK), Hong Kong.

Binance Exchange’s relations with major countries

The first difficulty faced by the service occurred right after the ICO in 2017. Investments in cryptocurrencies to the amount of $15 million were attracted from residents of China. The country’s authorities showed their displeasure for several reasons:

• The owner of Binance is not a Chinese citizen. Despite his origins, Changpeng Zhao is a resident of Canada, where he moved as a teenager and where he was educated.
• Investments are collected from private and non-professional participants. After the ICO with BNB tokensale, the country’s authorities imposed a ban on presales to keep citizens safe.

In response, Binance management moved the company to another jurisdiction outside of China. Subsequently, under pressure from regulators, the country of placement changed several more times.