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Binance publishes “letter of rights” for cryptocurrency users

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The exchange Binance released an unusual campaign this Tuesday (16). Through an advertisement, the company published ten fundamental rights for users of cryptocurrencies.

The manifesto-like document took up an entire page of the famous British newspaper Financial Times. In this manifesto, Binance demands universal access to financial tools, strict protection for personal data and other measures.

“The future of cryptocurrencies needs to be user-focused. And we are doing everything we can to make that happen,’ said the company.

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Complete list of ten principles of the manifesto

The original manifesto articles are available through a website created by Binance. The list is in English, but CriptoFácil translated all ten articles in full:

  1. Every human being must have access to financial tools, such as cryptocurrencies, which enable greater economic independence;
  2. Industry participants have a responsibility to work with regulators and policy makers to set new standards for cryptoactives. Smart regulation encourages innovation and helps keep users safe;
  3. Responsible platforms ​​have an obligation to protect users from wrongdoers, as well as implement customer identification processes (KYC) to prevent crimes;
  4. Privacy is a human right, and personally identifiable information (PII) data must be subject to strict levels of protection;
  5. Cryptocurrency users have the right to access exchanges that keep their funds safe, in escrow and with deposit insurance;
  6. Healthy markets ​​must maintain a robust level of liquidity to ensure a stable trading environment;
  7. Regulation and innovation are not mutually exclusive. Cryptocurrency users deserve secure access to emerging technologies and practices, including NFTs, stablecoins, staking, revenue and more;
  8. Closing the knowledge gap is essential when it comes to cryptocurrencies. Users are entitled to accurate information without fear of being victims of unfair or misleading advertising;
  9. Markets offering derivatives must be subject to appropriate regulations. This ensures that all users meet eligibility requirements and that their transactions are settled fairly;
  10. The regulation of cryptocurrencies is inevitable. Therefore, users are entitled to share their opinion on how the industry should evolve.

Customer Defense and Regulatory Compliance

This is Binance’s first major advertisement in a global newspaper. The manifesto came at a time when the company is trying to reinvent its corporate culture and remake its image. Now, Binance seeks to collaborate with authorities and change its image in the market.

However, the manifesto also bears characteristics of the posture of freedom advocated by Changpeng “CZ” Zhao, CEO of Binance. In fact, Zhao highlighted that all articles in the document aim to protect the user from the exchange.

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“At Binance, our priority has always been the everyday user, from their security to their experience as part of a larger community. That’s what cryptocurrencies are all about and it’s important that we don’t lose sight of that as an industry,” said Zhao.

Manifesto inspired by real life?

The Binance manifesto is, of course, symbolic. In other words, it has no legal power. But Binance’s list is apparently inspired by another famous statement, the Bill of Rights.

Present in the constitution of the United States, the Bill of Rights corresponds to the first ten amendments of the constitution of the country. In short, the law guarantees basic rights to the country’s citizens, just as the Binance manifesto defends the rights of cryptocurrency users.

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Also read: CS: GO, Free Fire and Dota2 Tournament will award players with cryptocurrencies

Also read: Bitcoin loses ground to Ethereum among institutional investors

Also Read: Gemini Announces Support for Shiba Inu Trades and Call for Robinhood Listing Grows

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Binance Smart Chain Activates Real Time BNB Burning Mechanism

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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.

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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.”

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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.

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Binance Singapore to Reportedly Withdraw its Permit Application

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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.

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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.

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Binance Boss CZ Is Richest Ethnic Chinese Person Alive, Report Claims

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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.

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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.

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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.

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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.

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