What are the disadvantages of the Binance platform?
Binance has been hit with a host of regulatory challenges around the world that seem to be increasing by the day. The biggest example of what regulators are worried about in the cryptocurrency space is investors’ unrestricted access to a range of digital tokens that finance officials have never heard of, without the traditional investor protections of regulated markets. While Binance is the largest cryptocurrency exchange in the world, the ongoing investigations and the long list of countries banning or limiting its services are cause for concern. Through this article, you will learn about the disadvantages of the Binance platform in order to avoid any problems in the future.
Where was the Binance platform banned?
United State
Regulators at the Commodity Futures Trading Commission are looking into whether Binance engaged in insider trading or market manipulation by “trading on customer orders before they are executed.”
The Department of Justice and the IRS are also examining Binance’s money laundering and tax evasion case
United kingdom
The Financial Conduct Authority stated that the UK branch of Binance operates without approval, and this is the biggest flaw of the Binance platform
Japan
Japan’s financial agency warned the company against operating without permission
European Union
Binance said in July last year that it would suspend deposits from the European Union’s single European payments area.
Germany
Binance has launched stock tokens, which are a type of synthetic tool that allows exposure to traditional stocks like Apple and Tesla without commission. But the German financial regulator stated that the tokens violated EU securities laws, prompting Binance to stop offering the tokens.
Thailand
In July, Thailand’s financial agency filed a criminal complaint against Binance, accusing it of operating a digital asset exchange without a license.
South Korea
South Korean regulators have warned cryptocurrency exchanges against registering with Binance, prompting the exchange to shut down support for Korean language and Korean currency trading pairs last August.
Malaysia
The Malaysian financial regulator took enforcement action against Binance and ordered it to cease operating in the country, prompting it to shut down access in Malaysia.
Disadvantages of the Binance platform
Spot Trading Fee: At 0.1 percent, the spot trading fee on Binance is low, but you will need to make sure that you take advantage of it and not use the spot trading feature at a price point higher than that because then the trading fee will go up.
Not available in some countries: The Binance platform does not work in many countries as we mentioned earlier, including the United States, America, Italy, Canada, China and Malaysia.
Customer Support: Customers can only contact customer support Customers can only contact customer support through a support ticket (email), ie there is no phone, no chat, but you have to explain the problem clearly in writing although the problem is not clear sometimes.
Complex platform: While the wide range of features and trading options on Binance can be exciting, it can also be intimidating, confusing even seasoned traders let alone beginners.
Lack of an integrated digital wallet: While some popular exchanges have built-in digital wallets, Binance does not.
Regulatory Problems: As mentioned earlier, Binance has faced many regulatory and legal problems in many countries, which may lead cryptocurrency investors to consider other exchanges instead.
Comparison of Binance and other cryptocurrency exchanges
Overall, Binance offers a wide range of backed assets and trading options to global traders, and its rates are among the lowest in the industry. But while there are some positives about the platform, its compliance issues are a cause for concern.
If you are hesitant about whether or not Binance is the right choice, you can consider Coinbase Pro, which is one of the main competitors, as another option.
Binance and Coinbase Pro
Binance and Coinbase Pro are the two largest exchanges in the world, providing active traders with diversified trading options and assets. Here’s a comparison of the two platforms:
1.Binance International supports more cryptocurrencies than Coinbase Pro
2.Binance spot trading fees are lower than those levied on coin maker Coinbase Pro
3.Binance offers a rewards program for holding BUSD on its platform, while
4.Coinbase Pro offers rewards for pooling your digital assets on its platform.
5.Coinbase Pro users can access a native digital wallet, while Binance users cannot
6.Coinbase is generally seen as one of the most stable and secure cryptocurrency
7.exchanges, while Binance has faced numerous security and compliance issues.
8.Binance and Coinbase Pro offer an enhanced trading experience. While Binance generally has lower fees and more global trading options, Binance.US is more limited with fewer options than Coinbase Pro, which may make Coinbase Pro a better option for US-based investors.
But while Binance’s fees are lower, they also face compliance issues in other countries and are being investigated, so all in all, Coinbase may be considered a more stable and secure platform than the flawed Binance.
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