What Is Binance: A Comprehensive Guide to the Cryptocurrency Exchange

What is Binance?

Binance is the world's leading cryptocurrency exchange and an ecosystem that includes a centralized cryptocurrency exchange with the world’s largest trading volume, the BNB Chain blockchain platform, a training center, investment and philanthropic funds, an NFT marketplace, and other products.

Overview of Binance

Binance is a leading cryptocurrency exchange that enables users to trade cryptocurrencies like Bitcoin, Ethereum, and Tether. Users can create a Binance account to access a wide range of trading features and benefits, including referral rewards and verification procedures. Founded in 2017, Binance has grown to become one of the largest crypto exchanges in the world, with a strong focus on altcoin trading. The exchange offers a wide range of services, including crypto-to-crypto trading, margin trading, and futures trading. Binance is known for its low fees, high liquidity, and fast processing speeds, making it a popular choice among cryptocurrency traders.

History and Expansion

Binance Exchange has a rich history that dates back to 2017 when it was founded by Changpeng Zhao. Initially based in China, the exchange quickly gained traction due to its user-friendly interface and extensive range of cryptocurrency offerings. However, regulatory restrictions in China prompted Binance to relocate its operations first to Japan and then to Malta, which was known for its favorable cryptocurrency legislation at the time.

Despite these challenges, Binance has shown remarkable resilience and adaptability. The exchange has expanded its services to over 180 countries, serving more than 250 million users worldwide. This global reach has been supported by the introduction of various innovative features and services, including margin trading, futures trading, and a comprehensive Web3 ecosystem. These additions have allowed Binance to cater to the diverse and growing needs of its users, solidifying its position as a leading cryptocurrency exchange.

What is the Binance cryptocurrency exchange?

Binance’s first and main product is a cryptocurrency exchange, which began operating in 2017. Users can trade Bitcoin and other cryptocurrencies through the Binance app, which provides a user-friendly interface for trading and managing their accounts.

It offers various tools on the Binance platform: spot trading of digital assets and leveraged transactions, derivatives, and a section for P2P exchanges. In addition, users have access to passive earnings on cryptocurrencies through staking and farming, a debit card issuance function and other services.

According to the official website, as of March 2025, Binance supports more than 600 cryptoassets and over 40 fiat currencies. Binance users benefit from integrated features such as a Web3 wallet and the ability to manage cryptocurrencies and participate in decentralized finance. There are 90 million registered users on the platform.

Binance does not disclose financial data. According to various estimates, its trading volume in 2024 was $100 trillion. According to media reports, the company’s own valuation equaled $62 billion in 2024.

The exact number of Binance employees is unknown, but in early 2022, the project’s ex.CEO Changpeng Zhao disclosed that the remote workforce is around 4,000.

Binance Exchange Features

Binance Exchange offers a wide range of features that make it a popular choice among cryptocurrency traders. Some of the key features include:

• Spot Trading: Binance allows users to trade cryptocurrencies in real-time, offering access to over 350 cryptocurrency assets and more than 1300 trading pairs. This feature provides a robust platform for users to trade cryptocurrencies efficiently.

• Margin Trading: For those looking to amplify their potential gains (and losses), Binance offers margin trading. This feature allows users to trade with leverage, providing opportunities for higher returns on their investments.

• Futures Trading: Binance also offers futures contracts for various cryptocurrencies, enabling users to speculate on price movements and hedge their positions. This feature is particularly useful for advanced traders looking to manage risk and maximize profits.

• Web3 Ecosystem: The Binance platform provides a comprehensive ecosystem for users to engage in various crypto activities, including trading, staking, and lending. This integrated approach ensures that users have all the tools they need in one place.

• Binance Earn: Users can earn rewards on over 180+ cryptocurrencies through Binance Earn, providing a passive income stream. This feature includes options like staking, savings, and yield farming.

• Binance Pay: Binance offers a payment gateway feature called Binance Pay, allowing users to pay for goods and services using cryptocurrencies. This feature enhances the utility of digital assets in everyday transactions.

Who founded Binance?

The founder of Binance is Changpeng Zhao. He is the CEO of the company and its largest shareholder.

Zhao was born in Jiangsu, China, then moved with his parents to Canada, where he graduated from McGill University. After graduating, he completed an internship at the Tokyo Stock Exchange, where he developed software for high-frequency trading. He then worked at Bloomberg for several years.

In 2005, Zhao founded his first company, which focused on developing algorithms for high-frequency trading.

He started working in the crypto industry in 2013, becoming one of the first employees of Blockchain.com. He held the position of technical director of OKCoin exchange.

Since the founding of Binance in 2017, Zhao had served as its CEO.

In 2022, Changpeng Zhao became the leader of Forbes’ ranking of the richest representatives of the blockchain industry. The publication estimated his fortune at $65 billion.

Binance Holdings Ltd. has faced significant legal challenges and regulatory scrutiny, including a recent guilty plea to money laundering charges.

Teng took charge at Binance in November 2023 after Zhao, who goes by CZ — pleaded guilty to violating anti-money-laundering laws and US sanctions.

Is the Binance exchange safe with its secure asset fund?

Binance guarantees users refunds in case of large-scale hacking of the exchange. For this purpose, in 2018, the company opened a special fund called Secure Asset Fund for Users (SAFU), which is used to reimburse stolen crypto assets worth $40 million in 2019, among other things.

SAFU receives a share of the commissions paid by users. According to official data, as of the end of 2024, the size of the fund was $10 billion. The fund’s assets are stored in BNB, BUSD and BTC.

Fees and Charges

Binance Exchange charges competitive fees for its services, making it an attractive option for traders. The fee structure includes:

• Spot Trading Fees: Binance charges 0.1% for makers and 0.2% for takers. These low fees make it cost-effective for users to trade cryptocurrencies.

• Margin Trading Fees: For margin trading, the fees are 0.02% for makers and 0.04% for takers. This allows users to leverage their trades without incurring high costs.

• Futures Trading Fees: Similar to margin trading, futures trading fees are 0.02% for makers and 0.04% for takers. This competitive fee structure supports active trading strategies.

• Withdrawal Fees: Withdrawal fees vary depending on the cryptocurrency and transaction amount. Users can check the specific fees for each asset on the Binance platform.

• Deposit Fees: Deposits are generally free for most cryptocurrencies, with some exceptions. This encourages users to fund their accounts without worrying about additional costs.

Additionally, Binance offers discounts to users who pay using Binance Coin (BNB), its native cryptocurrency token. This provides an added incentive for users to hold and use BNB for their transactions.

What is BNB Chain?

BNB Chain is an EVM-enabled blockchain launched by Binance in 2019. BNB is among the top 10 cryptocurrencies in terms of market cap, highlighting its significant value and ranking within the cryptocurrency ecosystem. In February 2022, it became a single blockchain platform following the merger of BNB Beacon Chain (formerly Binance Chain) and BNB Smart Chain (formerly Binance Smart Chain).

BNB Chain operates on the Proof-of-Staked Authority consensus algorithm and is focused on decentralized applications with a large number of users. The main areas of development of the network are decentralized finance (DeFi), non-fungible tokens (NFT), blockchain games (GameFi) and meta-universes (MetaFi).

In late 2021, Binance launched a $1 billion fund to back BNB Chain. The developers intend to bring the total number of users of applications based on this blockchain to 1 billion people.

Which popular applications run on BNB Chain?

• PancakeSwap is a decentralized exchange (DEX) based on an automated marketmaking mechanism. It ranks third in terms of trading volume among DEXs;
• Venus is a protocol for creating decentralized markets and issuing tokens and algorithmic stablecoins.
• Era7: Game of Truth - a tactical strategy game using NFT cards.
• Cream - a lending protocol with the ability to borrow tokens issued in the BNB Chain.
• Biswap - a decentralized exchange.

What is Binance Coin (BNB) and Binance USD (BUSD)?

BNB is a native coin of the Binance ecosystem. It is among the top 10 in terms of capitalization. Operates in BNB Chain. Users can track the cryptocurrency prices of BNB and BUSD to make informed trading decisions.

The main uses of BNB:

• Discounts on trading commissions for transactions in Binance.
• Payment of transaction fees in BNB Chain.
• Staking.
• Payment for services and goods in some services and online stores.
• Participation in tokensales on Binance Launchpad.
• Payments with Binance Visa Card.
• Use of liquidity pools and decentralized protocols on BNB Chain.
• Donations to Binance Charity.

Binance USD (BUSD) - a stablecoin project founded by Binance and the American company Paxos. The asset price is pegged to the US dollar at a 1:1 ratio. BUSD ranks fourth in capitalization among the stablecoins. It operates in the BNB Chain and Ethereum network.

The stability of BUSD price is provided by dollar reserves on the account of a special company operating in the USA. It is regulated by the New York State Department of Finance and is audited monthly. The amount of reserves corresponds to the number of Binance USD stablecoins in circulation.

What other products are part of Binance?

In addition to the crypto exchange, the following products are included in the Binance ecosystem:

• Binance Labs - a business incubator designed to support entrepreneurs, projects and communities in developing blockchain startups utilizing the BNB Chain. Binance Labs currently has more than 120 projects in its portfolio.
• Binance Academy - a learning portal with a database of educational articles and videos about digital asset trading, blockchain technologies, projects and companies. These resources provide users with various tools and information to start trading and managing their digital assets.
• Binance Charity Foundation is a non-profit charitable organization that runs a number of charitable programs to fight poverty.
• Binance Launchpad is an exclusive tokensale platform. Major projects that have launched on Binance Launchpad include Axie Infinity, The Sandbox, and Celer Network.
• Binance Research is a cryptocurrency market research and analysis department that releases research and provides professional data.
• Binance NFT is a trading platform that offers all kinds of digital art and collectibles.
• Binance Card is a Visa cryptocurrency debit card.
• Binance Pay is a cross-border cryptocurrency transfer service.
• Binance also acquired several crypto projects, which continued to operate while retaining their brand and autonomy:
• CoinMarketCap is the most visited aggregator of digital asset trading data.
• Trust Wallet - cryptocurrency wallet with support for a large number of digital assets.
• WazirX is India’s largest cryptocurrency exchange.

Regulation and Compliance

Binance Exchange has faced numerous regulatory challenges and controversies throughout its history. Despite this, the exchange has taken significant steps to ensure compliance with regulatory requirements. These measures include:

• Obtaining Licenses and Registrations: Binance has worked to obtain necessary licenses and registrations in various jurisdictions to operate legally and transparently.

• Implementing AML and KYC Protocols: To combat money laundering and ensure the security of its platform, Binance has implemented robust anti-money laundering (AML) and know-your-customer (KYC) protocols. These measures help verify user identities and monitor transactions for suspicious activity.

• Cooperating with Regulatory Authorities: Binance has shown a willingness to cooperate with regulatory authorities to address concerns and challenges. This includes working with law enforcement agencies and financial regulators to ensure compliance.

• Establishing a Secure Asset Fund: To protect user assets in case of unforeseen events, Binance has established a Secure Asset Fund for Users (SAFU). This fund is designed to reimburse users in the event of large-scale hacking or other security breaches.

However, Binance has also faced criticism and challenges from regulatory authorities, including the UK’s Financial Conduct Authority and the US Department of Justice. The exchange has been ordered to cease operations in some countries and has been issued fines for regulatory non-compliance. Despite these hurdles, Binance continues to adapt and evolve, striving to meet regulatory standards and provide a secure trading environment for its users.

Why criticize Binance?

Binance provides access to trading to practical users from all over the world. Binance Markets, the U.K. subsidiary, faced regulatory challenges when it was banned from offering regulated services by the Financial Conduct Authority. However, since its launch, it has been criticized by the authorities and regulators of certain states due to the lack of necessary licenses and permits;

The company does not disclose its legal structure, the exact number of offices and employees. Binance founder Changpeng Zhao and its representatives have long denied having a headquarters.

Back in 2018, the platform announced a “move” to Malta, which was then called a “blockchain island” for its favorable cryptocurrency legislation. However, in early 2020, the Maltese regulator reported that Binance did not hold a license to trade digital assets.

In 2019, US authorities officially banned Binance from operating in the country. It then opened a separate Binance US platform on which users from the United States could trade. Meanwhile, in 2022, U.S. law enforcement officials launched an investigation due to alleged ties between Binance US and trading firms affiliated with Changpeng Zhao.

Throughout 2021, Binance has come under a barrage of criticism from regulators in various countries, including Malta, Netherlands, Italy, Poland, Singapore, South Africa and Malaysia. Often, officials warned their citizens that the company lacked the necessary permits.

Amid regulatory concerns, the head of Binance issued a open letter in which he announced the beginning of transforming the digital ecosystem into a legal enterprise with a centralized business structure. He also spoke about plans to localize services in some countries and cooperate more closely with law enforcers.