Binance is undoubtedly one of the first names that comes to mind when discussing "cryptocurrency exchanges." This article examines Binance's safety measures, addresses scam concerns, and compiles user evaluations from platforms like PTT to help newcomers make informed decisions.
Binance Security: Is It Safe or a Scam?
In short, Binance boasts "high" security standards and is not a scam. Below, we break down its credibility through its background, regulatory compliance, and asset reserves.
Binance’s Background and Origins
Founded in 2017, Binance achieved a $15 million fundraising milestone within just two weeks of launch.
- User Growth: 6 million users within six months; now serves 120+ million registered users globally.
- Trading Volume: Averages $380 billion in daily transactions.
Regulatory Milestones:
- Acquired a UK FCA-regulated entity (2020).
- Licensed by Japan’s JFSA (2022)—its first East Asian operational license.
Who Founded Binance?
Changpeng Zhao (CZ), former CTO of OKCoin, launched Binance in 2017. Key highlights:
- All-in Bitcoin bet ($1M in 2014).
- BNB Creation: Binance Coin (BNB) now ranks among the top platform tokens.
- Global Recognition: Named to Forbes’ "Top 50 Influential Figures" (2020).
Note: CZ stepped down in 2023 after a $4.3B settlement with U.S. authorities—though Binance continues operations.
Regulatory Compliance and Transparency
1. Global Licensing
- France: Granted DASP registration (2022).
- Middle East: Operational licenses in Dubai, Bahrain, UAE.
- Asia: JFSA-regulated via SEBC acquisition.
2. Proof of Reserves
Binance’s Merkle Tree audits verify 1:1 user asset coverage.
- Reserve Ratio: 101% for BTC (575,742 BTC).
- Self-Verification: Users can check reserves via the Audit Report section.
Is Binance a Scam? Key Verdicts
Reputation and Rankings
- CoinMarketCap/CoinGecko: Top 10 exchange (Score: 9.9/10).
- User Base: 1.2B+ registrations across 200+ countries.
Risk Factors
- 2019 Hack: Lost 7,000 BTC ($40M); reimbursed via SAFU Fund.
- CZ’s Exit: Raised concerns but no systemic collapse.
PTT Community Reviews (Taiwan)
Forum sentiments vary:
- Optimistic: "Binance won’t collapse."
- Cautious: "Diversify assets across exchanges."
- Practical: "Use cold wallets for long-term storage."
Conclusion
While FTX’s collapse rattled crypto markets, Binance remains a relatively safe choice due to:
- High liquidity ($380B daily volume).
- Regulatory compliance (FCA, JFSA, etc.).
- Transparent reserves (Merkle Tree audits).
Recommendation: Spread assets across multiple exchanges/cold wallets to mitigate risk.
FAQ Section
Q1: Is Binance regulated?
Yes—in France, Japan, UAE, and other jurisdictions.
Q2: What if Binance gets hacked?
SAFU Fund covers losses (10% fee allocation).
Q3: Should I trust Binance after CZ’s exit?
Operational continuity remains intact post-settlement.
Q4: How to verify Binance’s reserves?
Check the Audit Report via your account dashboard.
Q5: What’s Binance’s trading volume rank?
1 globally per CoinMarketCap data.
Q6: Are PTT users bullish on Binance?
Mixed—proponents cite stability; critics advise caution.