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The History of Binance: A Multi-Billion Dollar Crypto Empire
By Dhirendra Das, May 25, 2024
Binance, despite legal challenges, remains the world’s largest crypto exchange 🌍. Millions of users transfer billions in crypto daily, showcasing its unique appeal.
Origins
Founded in 2017 by Changpeng Zhao (CZ) in China, Binance swiftly relocated due to a domestic crypto ban. An initial coin offering (ICO) raised $15 million, leading to the creation of Binance Coin (BNB), now valued at $87 billion.
Expansion
By January 2018, Binance became the largest crypto exchange, valued at $1.3 billion. It expanded globally, acquiring Trust Wallet and launching BUSD, a stablecoin. A 2019 security breach resulted in a $6 million Bitcoin loss. Binance’s growth continued, benefiting significantly from the COVID-19 crypto boom, controlling 50% of market trading volumes by 2023 📈.
Controversies and Legal Battles
Regulatory Issues
Binance faced global regulatory scrutiny. It had clashes with authorities in Malta, France, the Netherlands, and Nigeria, often over unlicensed operations and money laundering allegations. Notably, a $4.3 billion settlement with the US Department of Justice saw CZ step down as CEO and receive a light prison sentence due to his cooperation and clean track record.
Russia-Ukraine War
Binance’s decision not to ban Russian users amid the Russia-Ukraine war attracted US scrutiny. However, it later supported Ukraine with a $10 million donation.
Regional Operations
India: Initially non-compliant, Binance eventually aligned with Indian regulations, resuming operations in 2024 after paying a $2 million fine.
UAE: Benefited from the UAE’s crypto-friendly stance, receiving full operational licenses by 2024.
Moving Forward
Binance’s proactive legal settlements and compliance efforts have helped maintain its market dominance, sidestepping prolonged legal battles and fostering regulatory goodwill 🤝.
