Even without adhering to heavy rules like its friends in the United State and Japan, the Binance crypto exchange has earned the trust of crypto investors all over the globe.
This was recorded in a poll ran by Beaxy, a crypto exchange, and which was seeking to collect investor views on which crypto exchange they trust most between Coinbase, Binance, Bitmex, and Okex. The survey attracted 11,581 votes with the Binance crypto exchange scoring 63 percent followed by Coinbase at 31 percent.
The CEO of Three Arrows Capital, a hedge fund, Su Zhu, indicated that although other exchanges in different jurisdictions have attained licenses from regulatory bodies, they have not attracted as much investor trust as the Binance crypto exchange.
The CEO said that the Binance crypto exchange:
A lightly regulated exchange, has also become the most trusted crypto exchange among actual users. You can’t build trust by acquiring govt licenses/rubber stamps.
Binance crypto exchange is considered fairly regulated compared to other exchanges that have to cope with harsh regulations from financial regulators and security agents who fear that cryptocurrency exchanges are an easy way to launder money or to finance terrorism.
Binance, which was originally from China, moved to Malta among other countries when the Chinese authorities criminalized cryptocurrency activities in the country. However, setting camp in Malta does not exempt the exchange from the strict regulations in the country seeing that Malta falls under the Jurisdiction of the European Union.
The exchange has never suffered a hack which contributes to the investor trust score. Additionally, the Binance crypto exchange has invested heavily on investor protection. It has also sought the services of a blockchain data analysis company, Chainalysis, in detecting wallets that may be involved in fishy deals.
Which other exchange do you think has earned trust among investors even with little regulatory adherence?
Let us know your thoughts in the comments section below.