What is Binance, why did the world’s largest cryptocurrency exchange plead guilty?
The world's largest cryptocurrency exchange by trade volume, Binance, came under regulatory scrutiny earlier this year when the US Department of Justice (DOJ), along with the Commodity Futures Trading Commission (CFTC) cracked down on the company's lack of regulatory and legal mechanisms to prevent transactions made to fund terrorism, drug deals, and other illegal activities, as per the agencies. On Tuesday, the CEO of the company, Changpeng Zhao, pleaded guilty and agreed on a settlement worth 4.3 billion dollars.
But if you are unfamiliar with the world of crypto and want to know what is Binance, the reasons for it to plead guilty, and how this decision may impact the crypto industry in the future, then here is a quick guide. Let us take a look.
Binance, a cryptocurrency exchange, was founded in 2017 by Changpeng Zhao. The company was initially based out of China, then moved to Japan, and then to Malta. At present, it does not have any official headquarters. It became extremely popular and contributed to the explosion of cryptocurrency globally with its easy-to-use interface, support for a large number of cryptocurrencies, and low trading fees.
Binance also has its cryptocurrency which is known as Binance Coin. Before the settlement, Binance had a market share of 40 percent for crypto spot trading, claiming the top position in the market, with the second position going to Seychelles-based OKX with 5.44 percent of the market share.
Binance gained fame for building fast and breaking existing systems to reach a wider consumer base, often dipping its toes in unregulated areas, as per the allegations of the DOJ. It also led to its eventual fall.
As per authorities, Binance broke US anti-money laundering and sanctions laws and
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