Hello everyone...
When we saw for the first time all the potential that blockchain and cryptocurrencies had, it was known that a huge change would come along with a fast adoption process. And it all started with ethereum and the way to integrate with cryptocurrencies and generate profitability through defi, dapps, or NFT, which is easy and safe since ethereum is the blockchain with the best capacity to develop dapps and other investment instruments.
But ethereum has a huge flaw and that is the gas or transaction fees which is something extremely high to move small amounts of money in crypto, and these expensive fees are something that not many people looking to integrate more with cryptocurrencies could afford (including me).
So there was a need for another way to develop dapps, defi, NFT, etc.. that was more affordable and accessible to everyone. And that's when Binance came along and filled that huge need with 2 products that still to this day are huge markets that are worth billions daily.
The first thing Binance offered was a very cheap, secure, and fast exchange that promised accessibility to everyone no matter how little or how much they wanted to buy. It also launched the smart chain to compete with ethereum and offer the same technology to develop a lot of things but without the high transaction costs. And that is where Binance's unprecedented growth began and it spread all over the world and very quickly began to operate in almost all countries, it is also possible to access wherever there is an internet connection.
And such is the popularity of binance and binance smart chain, that Leo finance has also developed tools that serve as bridges between Ethereum and Binance smart chain and products such as cub defi based on the binance smart chain.
But not everything is rosy, as lately a long list of countries and financial authorities have imposed on Binance many restrictions and harassment because of the way it operates, and when governments explain this, they argue that criminals use binance to launder money from illicit activities, also Binance is a real nuisance for the financial authorities.
For this reason, they have ceased operations in some countries or continue to do so with many restrictions or constant controls, Binance has also been warned to seek licenses to operate in countries where it is not allowed to do so to avoid legal problems very similar to those faced by Ripple.
And as the accused Binance has to continue operating in the world because the business should not be stopped, governments have set conditions and one of the main ones is to impose KYC on all users who use their services, arguing once again the reason that this protects the security of customers and prevents financial crimes.
Is it real protection?
To all these new rules to use the Binance platform one thinks if this is protected as they argue? because when I read that these measures imposed were to protect customers I couldn't stop laughing, because we all know that this is not so, in fact, it sounds very similar to what Facebook mentions when you create an account.
But if we look at the user traffic and volume of money that binance currently has we will know why all these restrictions. According to Binance's Global Crypto User Index 2021 from the first quarter of this year, it showed that there were over 100 million active users on Binance and those daily volumes exceeded $25 billion. If we think about how much money that passes through Binance's hands is not being controlled by governments or the amount of financial activity taxes that governments are not receiving, we can now understand the enormous desperation to impose these restrictions on Binance with the argument of protecting the integrity of the users.
But the truth is that this is not something that impresses, since it was only a matter of time for Binance to do something like this, because as it is well known Binance is not decentralized at all and neither is the smart chain, so if they had no governmental pressure to implement KYC sooner or later they would do it since their business model works that way.
And this whole mandatory data collection process started when they imposed a minimum withdrawal requirement on users who did not complete the KYC verification, which meant that users who had not done the verification process such as entering your country and the exact place where you live, as well as personal data such as names and IDs and a passport photo.
What will happen to Binance?
I think that the smart chain will continue to operate normally since you don't need any KYC to use it, but unlike the exchange, everything will be a bit more difficult and user verification will be mandatory, just like if you go to a bank to open an account.
But despite all these restrictions for Binance, it will remain the largest exchange worldwide and will break major records every quarter, as Binance is a very big help for people who use cryptocurrencies as their main means of income, and as it is something very accessible and inexpensive it will get more and more attention.