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Cayman Islands: Binance is not authorized by CIMA

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The regulators of the Cayman Islands Monetary Authority (CIMA) have said that the largest crypto-exchange in the world, Binance, is not authorized to operate as a cryptocurrency exchange on the territory. 

Yesterday, with a press release , CIMA published its truth regarding the authorizations not granted to the crypto trading giant. 

“The Cayman Islands Monetary Authority (the” Authority “) wishes to inform the public that Binance, the Binance Group and Binance Holdings Limited are not registered, licensed, regulated or otherwise authorized by the Authority to trade of cryptocurrencies from or within the Cayman Islands. “

The question of CIMA regulators arises from the moment when a few days ago, the FCA , the agency that supervises the financial markets in the United Kingdom , also issued a ban against Binance Markets Limited. 

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Specifically, the FCA stated as follows:

“Binance Markets Limited is not authorized to engage in any regulated business in the UK. This company is part of a larger group (Binance Group). ” 

Raising the problem of the regulated headquarters of the crypto-exchange giant, the press seems to have identified the Cayman Islands. And, in fact, the press release wants to respond precisely to this dilemma:

“Following recent press articles referring to Binance, Binance Group and Binance Holdings Limited as a cryptocurrency company operating a Cayman Islands-based exchange, the Authority reiterates that Binance, Binance Group or Binance Holdings Limited are not subject to any regulatory supervision by the Authority. “

Cayman Islands and Binance: the authorities investigate the activity of the crypto-exchange

CIMA also stated that it will set in motion to investigate whether or not Binance is operating on the territory 

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“The Authority is currently investigating whether Binance, Binance Group, Binance Holdings Limited or any other company affiliated with this group of companies has businesses operating in or from the Cayman Islands that may fall within the regulatory oversight of the Authority.”

A somewhat chaotic situation that of Binance. In addition to the UK and the Cayman Islands, the Singapore financial regulator also said it will oversee the activities of Binance Holdings Ltd.

Essentially, Binance is looking for a license that would legitimize its operations in Singapore , alongside cryptocurrency firms including Gemini Trust Co. LLC and Hong Kong-based Crypto.com.

In this regard, yesterday, a representative of the Monetary Authority of Singapore or MAS , responded to a Bloomberg interview , explaining that while Binance Asia Services Pte. Operates in Singapore, the MAS is reviewing its license application to provide digital token payment. 

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The MAS said it is applying “robust standards” in the assessment of applications, and considers a number of factors such as the applicant ‘s ability to implement strong measures against illicit flows , as well as the suitability and fairness of shareholders and owners of the key appointments. 

In this regard, here is how the MAS representative described the situation: 

“Many applicants dropped out of the competition because they were unable to meet the standards set by last year’s Payment Services Act. Candidates will be subject to strict control in the licensing process and ongoing supervision of the MAS. “

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Crypto Newcomer Explodes After Abrupt Altcoin Listing on Binance

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A small-cap altcoin is shooting into the stratosphere after earning support from the global crypto exchange Binance.

The governance token Tranchess (CHESS) officially began trading today.

News of the coin’s listing triggered a 185% rise in the price of the asset – from $2.77 to $7.91. Its value has since settled to $5.09 at time of publishing.

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CHESS is listed in Binance’s Innovation Zone, a dedicated trading area where users can buy and sell newer tokens that are likely to have higher volatility and pose a higher risk to traders.

According to Binance Research,

“Tranchess is a yield-enhancing asset tracker with varied risk-return solutions on Binance Smart Chain (BSC), which consists of 3 tranche tokens (QUEEN, BISHOP, and ROOK) and its governance token CHESS. 

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The platform offers various features including a DEX (Tranchess Swap), money markets (Primary Market), staking, and network governance.”

Tranchess recently raised $1.5 million from Binance Labs, Three Arrows Capital, and other crypto venture firms.

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Binance proposes a real-time token burning mechanism to boost BNB value

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  • Binance has proposed the BEP-95 aimed to burn a percentage of transaction fees as a deflationary measure.
  • BEP-95 will occur alongside the quarterly token burn and well after the 100 million token supply is achieved.

Binance Smart Chain (BSC) is taking further steps to incorporate an additional deflationary mechanism to increase token valuation. As announced today, Binance (BNB) is introducing a new Binance Evolution Protocol (BEP) known as BEP-95. The BEP stands out from the network’s occasional token burns since it introduced a real-time burning mechanism.

According to Binance, a fixed portion of gas fees collected by validators in each block will be sent to the burn address. The ratio initially set at 10 percent, is adjustable according to changes proposed by the Binance community. BSC validators get to vote on community proposals, where voting power is based on staked BNB.

For a proposal to be reviewed by the validators, it has to receive a minimum deposit of 2,000 BNB (mainnet). All BNB is returned to holders after the finalization of the voting process. A proposal that wins is that which gathers 50 percent of the total voting power on the mainnet. Binance notes that voted-upon parameters are implemented immediately.

Details of Binance BEP-95 token burning mechanism

BEP-95 became relevant as it speeds up the BNB token burn, and makes the network increasingly decentralized. The BNB supply cap is about 168 million tokens and Binance intends to burn until 100 million tokens remain in circulation. This will take about 5-8 years to complete, according to Binance. The network’s most recent quarterly burn wiped out over 1 million tokens, worth about $639 million, from circulation.

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However, the latest update from its blog now says the BEP-95 burn “will continue functioning” even after the above target is attained. With the burn, Binance expects the intrinsic value of the BNB token to increase in tandem with demand. The network notes that validators and delegators may receive fewer tokens from staking, but the “fiat-denominated value of their rewards may increase.” Moreover, BNB has multiple use cases that benefit all holders of the token.

Currently, BEP-95 is in the draft stage and the network is yet to give a specific date for its implementation.

Several blockchains use the crypto-burning mechanism to create token scarcity and a subsequent increase in token value. Ethereum, for instance, uses the EIP-1559 for this purpose. 

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BNB price action

BNB, the fourth-largest cryptocurrency by market cap, was trading at $494 at press time, according to our data. The token has gained 0.8 percent in the day, and 4.8 percent week-over-week. Similar to other digital assets, BNB has rallied fueled by the Bitcoin-led gains. Crypto investor and YouTuber Lark Davis expects “good things” for the BNB price following its launch of a $1B growth fund.

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New proposal aims to raise Binance Coin value by burning BSC fees

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Amid the ongoing rally of Binance’s native token, Binance Coin (BNB), the developers of Binance Smart Chain (BSC) have proposed more measures to maintain the token’s deflationary model and improve its intrinsic value.

According to a new Binance Evolution Protocol, BEP-95, BSC developers are considering introducing a real-time burning mechanism for a portion of gas fees to reduce BNB supply and drive BNB value higher by increasing the demand. According to the BEP, BNB holders will decide how to dispatch the BSC gas reward.

Releasing the proposal on Friday, BSC developers noted that the new BEP might decrease the total amount of BNB that validators and delegators obtain from staking. The burning mechanism will be enabled by introducing governable parameters for two system smart contracts for collecting gas fees.

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Created by Binance in 2017, BNB is a deflationary token by design, meaning that Binance burns a percentage of the BNB supply every three months to maintain the token’s value. Binance will stop burning BNB once 50% of the initial supply has been burnt and only 100,000,000 BNB remain.

The latest BNB token burn took place last Monday, with Binance burning 1,335,888 BNB ($640 million) in its 17th quarterly burn.

The proposal comes amid BNB seeing a major rally recently, with the token breaking above $500 on Wednesday. At the time of writing, BNB is the third-largest cryptocurrency by market capitalization after Bitcoin (BTC) and Ether (ETH). The token is trading at $495, up around 44% over the past 30 days. BNB’s all-time high was recorded in May 2021, with the token surging to as high as $686, according to CoinGecko.

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The latest BIP, which occurred in August, is similar to a new transaction fee mechanism implemented for Ethereum’s London upgrade. According to Etherchain, the current average ETH burn rate amounts to 3.76 ETH or $15,448 per minute.

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