Why world leader crypto exchange Binance moved to Malta
Find out more about Binance and learn which are the other best cryptocurrency exchanges on Cryptimi
Binance’s rise to the top of the list of the world's best cryptocurrency exchanges happened fast. The Binance cryptocurrency exchange, initially founded in Hong Kong, was banned from China. Fortunately, Binance made the strategic move to set up its headquarters in Malta.
This happened soon after the Maltese government passed laws that provided a regulatory framework for businesses operating in the Cryptocurrency and Blockchain industry. The regulation officially passed into a law on July 4th 2018. Malta remains the only country in the world to officially pass such laws.
The three bills establish a regulatory framework for cryptocurrencies, blockchain, distributing ledger technology. The regulatory framework includes guidelines for initial coin offerings, exchange businesses, and general protocols for businesses operating broadly within the industry.
Perhaps it is noteworthy to highlight the fact that such a regulatory framework has earned Malta the title of “Blockchain Island”. Unsurprisingly, other businesses are taking notice and making moves to Malta to capitalize on having a regulatory framework which clearly governs what they can and cannot do.
Having a regulatory framework to comply with allows Binance to move more rapidly than its competitors that are oftentimes stuck in legal uncertainty. Since moving to Malta, Binance has launched its fiat to cryptocurrency exchanges and have plans to launch even more exchanges in Liechtenstein, Singapore and of course, Malta.
The Rise of Binance
Binance quickly grew from a once nonexistent cryptocurrency exchange firm to one which regularly accounts for the highest trading volume of cryptocurrency exchanges. In January of 2018, Binance became the largest cryptocurrency exchange.
The exchange is also highly regarded and trusted that it has built up a strong reputation. You can find a full review of Binance here. The development of Binance was funded by an ICO which took place in 2017 between the 1st of July and the 21st of July. At the time, interest in cryptocurrencies was rapidly increasing and large amounts of projects were issuing tokens via ICOs to raise funds. Over $6.5 billion was raised through ICOs in 2017 alone.
The exchange was founded by Changpeng Zhao, who has previous experience in founding a high-frequency trading system for brokers, working for blockchain.info. Moreover, Zhao also acts as Chief Technology Officer for OKCoin which – another huge cryptocurrency exchange.
Why is Binance the best Cryptocurrency exchange?
There are a number of factors Binance review sites consider when evaluating and rating exchanges. Such components include: liquidity, trading tools, and security.
Liquidity refers to a platform having a healthy balance between market buyers and sellers. This is important so that prices don’t undergo volatile price swings. Binance regularly accounts for the highest amount of volume among cryptocurrency exchanges, giving sufficient liquidity to the trading options. One of the reasons why Binance managed to become so successful is the fact that it offers a wide range of trading options. There are currently over 160 altcoins available to be traded against Bitcoin on Binance.
The exchange also has attractive trading tools for users. Each instrument has a price chart and traders can apply technical analysis tools to the chart to help make a more informed decision when trading. There is also an order book and in-depth chart so that traders can visualize the current state of the market.
Security is also a very important factor when considering the best crypto exchange to start trading crypto. This area is especially relevant, particularly if one takes into consideration the recent exchange hacks of Cryptopia and QuadrigaCX that took place in 2019. Binance has never suffered from a hack, thus has always been transparent with its users when any security concerns have arisen.
Over a short period of time, Binance quickly became the largest cryptocurrency exchange in operation. Nevertheless, it has not rested on its laurels, because the company has ventured into new markets, launching its first crypto-to-fiat exchange in 2018. This first fiat to crypto exchange supported the Ugandan Dollar. In 2019, Binance Jersey was launched which facilitated Bitcoin and Ether trading with Euro and GBP.
Find out more about Binance and learn which are the other best cryptocurrency exchanges on Cryptimi.
