- Withdrawl returns on Binance after service was temporarily suspended.
- Binance exchange remains number one crypto exchange.
- Firm now working with regulators to end crackdown.
Binance exchange has announced that users can begin to withdraw coins on the platform after it initially announced temporarily suspending the service.
In the early hours of Monday, Binance exchange CEO Changpeng Zhao announced the suspension of all transaction withdrawals due to “a large backlog of data,” as the exchange put it. Zhao, however, assured that all funds were safe despite suspending withdrawal.
Binance informed users that withdrawal activity had been resumed but reversed that action a mere 20 minutes later. The firm apologized to its global customer base for the inconvenience and shared that further updates would be announced.
It is worthy to note that the exchange was not hacked or attacked as it only had a routine check on its operations when its withdrawal service temporarily went down.
Many other Binance exchange news
Emphasizing its feet as the number one crypto exchange, Binance exchange recently revealed that trading volume crossed $1 billion on its platform on a single day, when $BTC touched a new all-time high of nearly $67,000.
With Binance being one of the leading spot markets and among the top in the crypto derivatives market, Binance accounts crypto trading volume from numerous countries.
Binance exchange announced that it has added a $SHIB/$DOGE trading pair for traders to move their funds within the meme currency quickly. The pairing comes after SHIB surged by almost 1,000 percent in October.
Also, Binance exchange is just coming out of series of regulatory warnings issued against its from over 10 countries. Despite how tough regulators came for Binance, it has bounced back strongly by taking appropriate regulatory measures and working with regulators around the globe to ensure full compliance.
In line with cooperating with regulators, the exchange CEO said they would build a headquarters and build independent offices in countries where it is currently offering its services.
Binance Smart Chain Activates Real Time BNB Burning Mechanism
BSC has launched its automatic burning mechanism, but it contains some differences from Ethereum’s London hard fork.
Binance Smart Chain (BSC) recently activated BEP-95, which integrates a real-time burning mechanism into its tokenomic structure. From now on, a fixed ratio of gas fees collected by BSC validators will be burned in each block.
The Real-Time Burn Begins
BSC announced the new mechanism’s launch over Twitter earlier this week. Its burn ratio – adjustable by governance – reportedly sits at 10% right now.
BEP-95 was introduced on October 22nd, with the goal of speeding up Binance’s burn process and further decentralizing the network. The company also theorized that this will drive up the price of BNB tokens, presumably through increased scarcity.
“While implementing this BEP might decrease the total amount of BNB that validators and delegators receive from staking, the fiat-denominated value of their rewards may increase,” claimed Binance. “This burning mechanism would further reduce BNB supply; thus, increasing demand would drive the BNB value higher.”
Binance has been manually conducting BSC burns since its inception. Its aim was to reduce BNB’s total supply by 50%, from 200m to 100m tokens. One such burn was conducted shortly before BEP-95 was announced, taking $640 million (1,335,888 BNB) off the network.
Binance’s real-time burn will work alongside the exchange’s scheduled burn events. Notably, it will remain in effect even after the scheduled burns have reached their 100m BNB supply target. As BEP-95 reads: “By design, BNB is a deflationary token.”
Binance Burning Versus Ethereum
Binance’s new burning mechanism is similar – but not identical – to Ethereum’s. While both chains collect tokens for the burn pool through transaction fees, some BSC’s fees are still used to compensate validators. On Ethereum, all mandatory fees are sent to the burn pool, with a ‘tip’ option available for transactors to compensate miners. The rest of miners’ compensation is delivered through block rewards.
Furthermore, as Binance uses proof-of-stake, there are no new tokens entering circulation to balance out the burn. Meanwhile, Ethereum’s block rewards and burn pool work against each other when influencing currency supply. This sometimes results in a net-deflationary time period for Ethereum but still produces an inflationary environment overall.
Binance Singapore to Reportedly Withdraw its Permit Application
After being on the regulator’s waitlist of crypto exchanges that are yet to get approval in Singapore to legally provide crypto services, Binance may just quit its former hub, and move on to expanding its business in other territories. According to Business Times insider reports, Binance has hinted at withdrawing its application with the Monetary Authority of Singapore (MAS), in lieu of the long-standing halt of seeking an operation’s permit. Furthermore, the withdrawal will depend upon whether or not the Nation’s regulatory authorities consider a change in stance. Regardless, Binance is expected to declare its final decision by next year.
Binance CEO Shares Risk Reduction & Economic Growth Strategy
While Binance CEO, Changpeng Zhao declined to comment on the status of his the exchange’s local unit’s licence application in Singapore, noting that it is “in the process”, he did highlight that Binance will only set up shop in countries with a pro-crypto approach. Despite the exchange’s recent decision to become regulator-friendly and more centralised, Binance does not believe in completely giving in to irrational regulatory restrictions. CZ argued that while risk reduction is essential for consumer protection, however, pro-crypto regulators have a way of both, reducing risk while enabling innovative and economic growth.
“When (regulators) only go by that metric, they just shut everything down, and yes that’s the best way to reduce risk. But better regulators have 2 metrics – they want to encourage innovation or economic growth and reduce risk. Regulators usually make rules that are much more pro-business when they look at both these metrics.”, The Business Times quoted its impromptu interview with CZ.
Singapore authorities are adopting a pro-crypto approach while also maintaining regulatory oversight. However, the nation is still to pass crypto exchange giants’ applications to allow them to legally provide services in the area.
Last month, CoinGape reported that both, Binance and Coinbase were struggling to acquire their licenses from MAS, while authorities revealed that more than half of the companies that applied for crypto permits in 2020, had already received their approvals. Although MAS noted that some crypto companies were still operating with an exemption, and waiting to get approved by the authorities.
Binance Boss CZ Is Richest Ethnic Chinese Person Alive, Report Claims
The Binance Founder and CEO Changpeng “CZ” Zhao is the richest ethnic Chinese person alive, a new article has claimed – although mainstream Chinese media outlets appear reluctant to report on the news.
The claim was made by the outspoken media outlet Caijing on Weibo and reported on in detail by numerous Chinese-language outlets, many of which are based outside Mainland China. The mainland’s mainstream outlets, however, all maintained a stony silence on the matter.
The media outlet noted, quoting data from unnamed “insiders,” as well as previously published information from Forbes that Binance was being valued at USD 300bn, adding that Zhao, a Chinese-Canadian, owns 30% of Binance’s shares. If these calculations are correct, it explained, the Binance chief is now worth USD 90bn.
This valuation, Caijing added, “means that Zhao has become the richest [Chinese] man and ranks among the top 10 richest people in the world.”
The media outlet was quick to point out that the beverages giant Nongfu Spring’s founder, Zhong Sui Sui, is the mainland’s richest man and the second-richest Chinese in the world – and that Zhao is now worth 35% more than him.
Next on the list came ByteDance (the TikTok operator) Founder Zhang Yiming, followed by Zeng Yuqun, the Founder and Chairman of the Ningde Times media empire. Bottom of the top five was the Tencent supremo Ma Huateng.
But Zhao appeared to question the logic behind the calculations with a tweet featuring some mathematics of his own.
If I sell 0.01% of the company equity to someone for $1 dollar, then the company is worth $10,000.
If I issue a coin with a 1T supply, and sell 1 of them to someone for $1 dollar, then I have a $1 trillion dollar coin.
Valuations without liquidity doesn’t mean much.— CZ 🔶 Binance (@cz_binance) November 30, 2021
Regardless, Chinese-speaking netizens were impressed. On Weibo, one highly upvoted comment read:
“He is the richest man [on the list] just by virtue of holding Binance shares. The value of his cryptocurrency holdings has not even been taken into account. He’s a person who can be rightly compared to Elon Musk.”
Cryptonews.com’s own Baidu and Google searches for recent news on Binance and Zhao produced precious little in the way of mainstream reporting on the matter in China, despite the fact that the Caijing post was made over 24 hours ago.
Indeed, trying to find Mainland Chinese reports on anything crypto-related – including Binance itself – is proving to be an ever-more-difficult task, as some observers have been discovering.