For a period of time, FUD against Binance has been one after another, and it has been spreading in the media and the community from multiple perspectives, such as user asset security, Binances financial status, cooperation with verification companies, and judicial investigations. Based on the principle of openness and transparency, in order to prevent false information from being further magnified, we will sort out and respond to the following frequently mentioned questions one by one, hoping to clarify the truth.
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1. About the temporary suspension of withdrawal of USDCWhy is USDC not mentioned enough? — Binance Published September 5, 2022announcement
, the users USDC, USDP, TUSD stablecoin balance and new recharge will be automatically converted to BUSD at a ratio of 1: 1, that is, there are no trading pairs of USDC and other stablecoins on the Binance platform, and users can transfer them at any time Assets denominated in BUSD can be withdrawn from USDC, USDP and TUSD at a ratio of 1:1. Therefore, when there is a large-scale USDC withdrawal, the platform needs to convert BUSD to USDC first.Why does conversion take so long? ——The previous conversion between PAX/BUSD and USDC needs to go through a US dollar account in a bank in New York, USA, and can only be carried out during the banks business hours, resulting in a delay in conversion. In the future, we will optimize for this conversion funnel. CZ inTwitter on December 13th
Is there a problem with platform liquidity? ——It should be emphasized that even during the suspension of USDC withdrawals, users can still withdraw other stablecoins such as BUSD, USDT, USDP, and TUSD normally. User funds are supported 1: 1, and there is no liquidity problem.
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2. Binance does not have sufficient reserves for users to withdraw coinsTrust WalletAll users assets in Binance are supported 1:1, and users also have the right to withdraw coins at any time. Binance will support and serve users coin withdrawal needs 24/7. Therefore, if users have any worries, they can withdraw assets at any time (recommended the use of decentralized open source wallets -
). Although between December 12th and 14th, net withdrawals on the platform reached 6 billion US dollars, we have withstood the test. Facts have proved that we will win the trust of more users after this turmoil.
Binance will not embezzle users funds for any transactions or investments, nor does it have any debts, nor is it on the list of creditors of any company that has recently gone bankrupt. A few negative cases do not represent the entire industry. Many people started to doubt and attack the encryption industry as a whole through a few negative cases, which shows that the development of the entire industry still has a long way to go. As an industry leader, Binance will take more responsibilities and continue to build the industry.
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3. Questions about Mazars and Big Four accounting firms refusing to serve Binance
Mazars against Binance? ——Regarding Mazars, the company stopped working with [all crypto companies] including Binance, not just Binance.
On-chain verification of encrypted corporate reserves is a very new field. At present, we are still actively communicating with companies willing to provide verification services for encrypted companies, and will share the latest progress with you soon.
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4. Why only BTC verification is launched?BTC VerificationIt is only the first step. We will use BTC as the starting point to complete the on-chain verification of some mainstream currencies as soon as possible. At least we can allow users to query by themselves. Please clickLinkSee how to view/verify on-chain assets. The reserve verification of the second batch of assets will be launched soon, please stay tunedBinance Proof-of-Reserve System
Binance takes the most cautious attitude towards all work involving user assets, especially in the face of various currencies and huge volume, we need the cooperation of multiple teams such as technology, finance, security and risk control, and it takes a lot of money Time to organize and verify. At the same time, we will continue to collect user feedback as a basis for the launch and improvement of other currencies and network functions in the future. We will also provide users with more guarantees and further prove our financial health by providing additional technical solutions, such as zk-SNARKs.
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5. Reports on Binance Refuses to Disclose Financial Information and Financial Black Box
Binance does not need to disclose detailed financial status for two reasons: first, listed companies must disclose company financial details to their investors, but Binance is a private company, not a listed company; second, Binance is financially healthy Self-sufficient, no external financing needs and external investors, and no intention to go public at this stage.
As mentioned in 2, 3 and 4 above, Binances capital structure is debt-free, and the funds earned through transaction fees and investment can fully cover daily operations, and are related to buying and holding for users The assets are completely separated and there is no misappropriation. Based on the principles of customer first and openness and transparency, Binance will continue to promote asset reserve verification on the chain to make it easier for the outside world to query and verify user asset storage.
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6. Regarding Reuters’ report “U.S. Department of Justice launches investigation into Binance”
This is not the first time the media has reported us like this, in fact, similar reports happen several times a year. Although there is room for ambiguity in some descriptions in the report, such as internal disputes and possible out-of-court settlement, some readers are only willing to believe the eye-catching headlines. We are currently unable to respond to any controversial judicial discussions, but in the face of unilateral allegations from the media, we also hope to clarify and emphasize the following facts that have been ignored by the public for a long time:
First, Binance is an exchange with the most compliance approvals/licenses in the world. Binance has obtained local regulatory approvals or operating licenses in many countries and regions around the world, including but not limited to: France, Italy, Spain, Poland, Lithuania, Australia, New Zealand, Dubai, Bahrain, Abu Dhabi, Kazakhstan, etc.Second, Binance is inAn exchange that invests the most in terms of investment. Weve assembled a world-class security and compliance team comprised of experts from top investigative organizations and law enforcement agencies, which has grown by more than 500% this year alone. On the other hand, our security team also works closely with law enforcement agencies, organizing multiple cryptocurrency law enforcement training courses and conferences around the world, sharing our experience and knowledge, and assisting law enforcement agencies to fight criminals. Since November 2021, Binance has responded to more than 47,000 law enforcement requests with an average response time of three days (faster than any traditional financial institution), and has participated in more than 70 law enforcement requests worldwide. anti-cybercrime workshop.
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7. About Binance destroying FTX?No, FTX Destroyed Itself, CZ said atTwitter on December 6th
Binance will not regard other exchanges as competitors. The current industry touches less than 6% of the population. We are more focused on continuously promoting and expanding industry adoption. We also hope to see more exchanges, blockchain, Wallets, etc. coexist in this ecosystem, allowing more people to enter the field of blockchain cryptocurrency without spending time and resources on any unhealthy competition within the existing scope.
