Binance is a global cryptocurrency exchange that provides trading services for over 100 cryptocurrencies, including options, spot trading, USDⓈ-M Futures, COIN-M Futures, and other trading products. Since early 2018, Binance has been regarded as the world's largest cryptocurrency exchange by trading volume.
The name "Binance" is a portmanteau of "binary" and "finance". Binance began its cryptocurrency trading services in 2017, capable of processing approximately 1.4 million orders per second, offering trading for more than 150 cryptocurrencies, including popular ones like Bitcoin, Ethereum, Litecoin, and its own BNB token.
In June 2022, Bloomberg reported that the U.S. Securities and Exchange Commission was investigating Binance to determine whether its 2017 initial coin offering (ICO) violated securities laws.
Binance was founded by Changpeng Zhao. In 2005, Zhao founded Fusion Systems in Shanghai, which specialized in building high-frequency trading systems for brokers. In 2013, Zhao joined the cryptocurrency wallet team at Blockchain.info as the third member. He also served as Chief Technology Officer at the cryptocurrency exchange OKCoin for less than a year.
Binance primarily offers options, spot trading, USDⓈ-M Futures, and COIN-M Futures to users who have completed KYC (Know Your Customer) verification, along with products such as trade mining, leveraged tokens, and fan tokens. Among these, the USDⓈ-M perpetual futures offer 1-100x leverage and are Binance's largest trading product by volume.
Binance periodically conducts IEO (Initial Exchange Offering) activities through its Launchpad platform, where users can stake BNB tokens to exchange for new tokens on subscription day.
Binance also offers a referral program, allowing users to earn commission rebates on trading fees by inviting others to trade on the platform.
BNB is Binance's platform token, which can be used to pay for trading fees and as gas fees on Binance Smart Chain. It was first issued by Changpeng Zhao between June 26 and July 3, 2017. The initial price was 1 ETH for 2,700 BNB or 1 BTC for 2,700 BNB, with a total supply of 200 million BNB. As of July 2023, its market capitalization is approximately $37.7 billion.
Binance was founded in China, but relocated its servers and headquarters to Japan in September 2017 following a government ban on cryptocurrency trading in China.
In 2018, Binance established an office in Taiwan. By January 2018, Binance was the largest cryptocurrency exchange globally, with a market capitalization of $1.3 billion for its cryptocurrency BNB.
In March 2018, facing stringent cryptocurrency regulations in China and Japan, Binance announced plans to establish a new office in Malta.
In April 2018, Binance signed a Memorandum of Understanding with the Bermuda government. A few months later, Binance signed a similar memorandum with the Malta Stock Exchange to develop a cryptocurrency trading platform. To expand its influence in Europe, Binance planned to move to Jersey and obtain a local exchange license, increasing trading pairs to include the Euro and British Pound.
In August 2018, Binance, along with three other large exchanges, raised $32 million for a stablecoin project. The stablecoin aims to provide a cryptocurrency unaffected by the significant volatility of Bitcoin and other digital assets.
In September 2018, a report by the New York Attorney General's office stated that out of 13 virtual currency exchanges, four, including Binance, refused to provide the office with requested documents on security measures, anti-hacking practices, and business operations. The report indicated potential negative impacts on traders due to undisclosed unequal trading opportunities and fees charged by Binance for listing cryptocurrencies on its platform. The investigation suggested that Binance might be violating New York's virtual currency regulations.
On December 5, 2018, Changpeng Zhao announced that Binance's decentralized exchange (Binance DEX) would be built on the Binance Chain blockchain. He stated that its "instant" transactions would compete with Ethereum, EOS, TRON, and Stellar.
On June 26, 2021, the UK Financial Conduct Authority announced that Binance could not conduct any regulated financial activities in the UK.
In March 2022, during Russia's 2022 invasion of Ukraine, Binance CEO Changpeng Zhao refused to ban Russian users citing "financial freedom". Although Binance softened its stance, it did not change its policy, and donated $10 million for humanitarian needs in Ukraine.
In April 2022, Reuters reported that Binance had shared information with Rosfinmonitoring about funds raised by imprisoned Russian opposition leader Alexei Navalny in 2021.
In March 2023, Binance suspended GBP deposit and withdrawal services.
On May 27, 2022, Binance announced the registration of a legal entity in Italy, planning to open an office and expand its local team. CEO Changpeng Zhao also shared Binance's registration information with French market regulators. The company seeks registration in more European countries, including Switzerland, Sweden, Spain, the Netherlands, Portugal, and Austria.
On June 5, 2023, the U.S. Securities and Exchange Commission filed 13 charges against Binance and Changpeng Zhao.
On November 21, 2023, Changpeng Zhao stepped down as CEO of Binance and admitted to violating U.S. anti-money laundering laws. Binance will pay approximately $4.3 billion in fines to U.S. authorities.
As of now, users from China, the United States, and Turkey cannot trade stock tokens.
