Is Binance a centralized exchange? Binance is a cryptocurrency exchange that give the ability to transfer and trade cryptocurrencies for its users. Binance exchange was founded by Changpeng Zhao (CZ) and Yi He in 2017 and in 2018 it broke the world record for trades mass amount in competition with other cryptocurrency exchanges.
Here in this article in shetcoiner, we are talking about Binance exchange being centralized.
Binance’s centralized exchange?
It’s maybe a question for you too that is Binance a Decentralized exchange? or is it centralized? Binance is actually a centralized exchange that is being hosted in some servers all around the world. Binance actually have tried to set up its decentralized version that is called DEX and has tried a lot. Including that Binance has proceeded to make and develop Binance Chain network and Binance Smart Chain alongside it.
In centralized exchanges you need to verify your identity and give your personal data to confirm your trade account unlike decentralized exchange.
Centralized exchanges wasn’t so popular in the last few years but in a short amount of time, decentralized exchanges like Binance DEX, Uniswap and Pancakeswap got a lot of popularity.
This decentralized exchange’s popularity happened after the increasing of crypto’s market mass and countless new fans of cryptocurrency in this market. Another reason of decentralized exchanges growth and the support it got, was the political and economic pressure of countries like China, United State of America and other European and Asian countries to the centralized exchanges and its users.
Currently, the decentralized exchanges introduced in this article each have their own standard token and separate Blockchain network to be able to support their huge amount of users.
Another reason for the popularity of decentralized exchanges such as Pancakeswap and Binance DEX is the very low fees that make even these exchanges competitive with centralized exchanges. Currently the crypto transfer fee in Binance DEX is about 0.05% (if paid with BNB) and the Pancakeswap fee varies from 0.25% to 0.17%. These fees are still higher than those of centralized exchanges, but they are very attractive to crypto fans due to their decentralization and the newness of these platforms.
New rules governing Binance centralized exchange
Binance Exchange has unfortunately been severely criticized in recent months by many regulatory agencies in various countries, including the United States, China, and many European countries, such as the United Kingdom and Italy. The centralized exchange has apparently been forced to cooperate more with governments around the world in order not to lose its popularity, and in a statement issued a few days ago, it stated that all users must perform level 2 Binance authentication, and users Previous ones can also withdraw from their accounts.
Unfortunately, these new Binance rules have caused the security of this exchange, which was a leader among other exchanges for many years, to be discussed and the capital of many users to be taken out of it. Many cryptocurrency experts believe that by doing so, Binance took another step in centralizing its exchange and moving away from the decentralization that was evident in Binance’s previous motto and practices.