Admit it, you are here because you are also eager to invest in cryptocurrencies and benefit from them. But, you have decided to first do your homework and then go for cryptocurrency investments. I can say that until now, you have hit the bingo figuring out that Binance is the largest cryptocurrency exchange in the entire crypto-verse. However, you may want to know whether it is safe and wise to invest in Binance at present or not? Well, given the current situation, I must say that the chances of you having a good or bad experience at the exchange are 50/50. The reason I say this is because it does not mean that all major cryptocurrency exchanges are doing fine and are having no troubles. When it comes to dealing with customers, there is no doubt in saying that Binance does it better than any other crypto-exchange. Currently, the exchange has the highest user base that crosses 40 million active users. This could only be achieved by any exchange if it were to be customer-centric and was a lucrative one. Whether it is crypto price analysis, trading signals, customer support, or any other service, Binance is on top and has the lead. However, becoming the largest cryptocurrency exchange in the world has its drawbacks and that is exactly what Binance is facing at the moment.
What is Troubling Binance?
Surprisingly, the exchange is currently facing the worst situation as it is being scrutinized by several regulatory authorities from around the world. At present, there are several regulators questioning the way the exchange has been providing its services in their respective countries. They are even coming to the points where they are banning the exchange. I will now share how the exchange is being affected and will let you decide whether it is safe to trade with Binance or not:
Countries Partially Banning Binance
The reason behind Binance getting into troubles with global regulators is because it introduced several products for users worldwide, when regulators were not paying much attention to crypto-sector. At that time, the exchange offered leverage trading at really high margins as well as staking and different services. This meant that if the users were participating or adopting these methods to increase their profits, they would end up risking their funds. This is something that the regulators would not have approved because it would put the funds of the investors at very high risks. Therefore, the exchange had to either reduce the leverages that it offered or had to completely discontinue the service/product for the particular country. In Australia, Binance reportedly banned cryptocurrency options and futures trading. Then in Europe, Binance had to reduce the leverage trading feature. Furthermore, Binance had to ban derivatives trading feature for the Hong Kong based users. Furthermore, Binance has started receiving warnings from regulators based in South Africa, Turkey, Canada, and many more, making the situation even worse for the exchange.
Countries Completely Banning Binance
Then there are countries where the exchange has been completely banned from operating. There are more than one reasons behind the banning the exchange by the regulators from the respective countries. The first reason is that regulators from some countries do not even approve Binance to operate to begin with. Then there were cases where the exchange tried offering services to users in certain countries without even getting them approved. Later on, the exchange was banned by these regulators who revealed that despite making several communication attempts, the exchange never responded. Therefore, the regulators went ahead and banned the exchange entirely. Some of the countries that do not let Binance operate altogether include Netherlands, Italy, Germany, and many more. When it comes to the exchange being banned by regulators, there are countries such as Thailand, Malaysia, the United Kingdom, and the United States.
What Do You Want to Do Now?
I hope I have managed to make my point that despite all the growth and being a centralized exchange, Binance is still very risky. There are very high chances that the exchange may end up facing even more scrutiny and may end up getting banned in many countries as well. Still, the exchange ranks at the top of the list, being the largest exchange in the world. Therefore, the decision is completely yours so make your choice, but make sure you don’t regret it.