Binance has established itself as a truly global crypto exchange offering a range of services to various countries. It became quite popular for offering fiat to crypto onboarding ramps in financially troubled nations. However, in its quest to achieve global crypto dominance, the exchange overlooked certain regulatory compliance measures in several countries that have come back to haunt it now. The regulatory setback comes at a key juncture when other crypto platforms are flourishing by forging new partnerships while Binance is losing its key partners.
The leading crypto exchange had been cautioned by regulators from six countries over the past month itself, where the regulatory warning ranged from caution to criminal proceedings. Binance is currently facing the biggest challenge in the UK where the top regulatory watchdog FCA had warned local businesses from offering their service to the exchange. As a result, Binance’s key payment partner Coin Junction in Europe severed ties with the platform yesterday, leading to the suspension of Sterling Pound deposits right after.
Apart from the UK, the Thai SEC has initiated a criminal proceeding against Binance for offering their service in the country without the regulatory clearance. Japan, Cayman Islands, Canada, and Singapore have also cautioned customers in their native countries that Binance has not been cleared by them to offer the services.
Now that Binance seems to be back at the regulatory drawing board, another crypto exchange has a very clear plan to dethrone the existing leader to become the new king- play by the rules.
FTX crypto exchange is currently leading the pack of exchanges that is aggressively expanding its crypto market by forging new partnerships around the globe.
FTX is Rapidly Expanding its Market
FTX crypto exchange over the past month has forged several partnerships expanding its reach among institutions. The most recent collaboration with an institutional tool provider ClearLoop. The new partnership would allow 300 plus institutions to access various FTX crypto products.
The crypto exchange that first made its name via derivative market offerings has become a leader in spot crypto trading as well. The biggest flex for the crypto platform has been its solid exchange infrastructure that has remained active even during the peak of market sell-off when almost every other crypto exchange including Binance and Coinbase went down.
— SBF (@SBF_Alameda) July 1, 2021
FTX has also signed several sponsorships deals with top MLB sports clubs, football arenas, and leading MLB player Tom Brady himself who would act as exchange’s international ambassador. The exchange is also a key VISA partner to help it expand its crypto adoption. The crypto platform was reportedly raising $1 billion in May that would take its valuation to $20 billion.
As Binance’s regulatory dilemma intensifies the likes of FTX continue to play by the rules and achieve the slow but steady success that could eventually help it surpass Binance to become the leading crypto exchange of choice.