Should Binance users be worried over the exchange?

[Iamcrypticguy]

binance will lose a lot of its clients from countries like India and Russia. and it might also happen in more countries. The Philippines SEC has already issued a warning Binance will be blocked in the country, you can already tell this is geopolitics and will not be surprised anymore.

Yes. Indian crypto traders received disappointing news recently.  Folks there can no longer utilize the platform to buy, sell or trade digital assets.  Instead they must withdraw any funds stored on Binance.  This creates headaches for Indian crypto enthusiasts who relied on its services.  However, Binance still runs in most places worldwide and  the company tries to fully comply with laws across different countries.  So this Indian closure seems isolated, rather than signalling wider troubles for Binance.

Binance makes the transaction on P2P very easy for local currency trading. we will be registering to another exchange if they are blocked. India has Wazirix. each country has its local exchanges, that's where we all are going to be. Government-backed exchanges.

Are there no other top exchanges that are regulatory compliant that are operational in Indian? I don't think only Wazirix can cater for the millions of users who have been using Binance.

There is. I have some friends in India, and they've switched to Bitget. I suggested they try their P2P to see if it's seamless, and once I get feedback, I'll revert. So far, they're comfortable with the platform

[The Future]

This doesn't just concern binance but all custodial exchanges IMO as there's always a chance your local government could put exchanges (or crypto in general) in a strict regulatory pressure/framework.

So yes, if you're a custodial exchange user, you should always be worried and follow commonly advised precautionary measures such as not treating any custodial service as a means of long term storage, keeping up to date with relevant crypto news as well as your go-to-platforms.

This is really a horrible news for Indian crypto users. Binance was the most popular one, but it is exiting with others, so Indian users need to use DEX or other available CEXs. And I think Bitget, Bybit, and others are still available to use, so they can use those CEXs to carry on their crypto journey.

[R1dwanRz]

Concerns from a user perspective? Not too. They're the contributors to this platform. The choice is easy, migrate to another place so that the new place slowly becomes a large market share.
We're talking about long-term prospects here, it is Binance who will have to worry if they remain stubborn and don't want to operate without clear legality.

While Binance boasts of being a global player, their resistance to adapt to local regulations in some markets could definitely come back to bite them. If they remain inflexible, they risk losing access to key markets like India, potentially hindering their long-term growth.
Anyway, I wouldn't say the situation is entirely bad. Few reputable exchanges are still operational in India. It's just that the government hasn't banned cryptocurrency outright, they're just tightening regulations. This can actually be seen as a positive step towards legitimizing the industry and weeding out bad actors.

[Altcoiner007]

It depends on whether you still trust the exchanges. I am also a Binance user, but in my country, the government will soon ban it. I am not sure about the progress, but they have given 90 days to continue using it until the ban is enforced. We cannot use VPN since Binance will ban users who use it. I think it's better to transfer all of my funds to hardware wallets or other exchanges. If you want to keep your funds safe, I suggest you do the same.

I quite agree with you. It's best for OP to play safe as no one knows what these regulators are upto. The Regulatory thing have been around since 2018 but the Crypto landscape keeps evolving and surviving all the threats of the government. Meanwhile, there are good Suggestions dropped already, OP can take insight from them.

[EarnOnVictor]

It depends on whether you still trust the exchanges. I am also a Binance user, but in my country, the government will soon ban it. I am not sure about the progress, but they have given 90 days to continue using it until the ban is enforced. We cannot use VPN since Binance will ban users who use it. I think it's better to transfer all of my funds to hardware wallets or other exchanges. If you want to keep your funds safe, I suggest you do the same.

I quite agree with you. It's best for OP to play safe as no one knows what these regulators are upto. The Regulatory thing have been around since 2018 but the Crypto landscape keeps evolving and surviving all the threats of the government. Meanwhile, there are good Suggestions dropped already, OP can take insight from them.

Initially, Binance will not disallow you even if your country restricts cryptocurrency, are you now saying that Binance is working with every government of the countries that ban cryptocurrency? This can't be true, I think that they are self-serving, they might be serving their own pocket unjustly. Unless warned but the person didn't yield, they can lock the account which is justifiable. Even by international law I know, they would have given the person more time and still sent several warnings before they are allowed to lock the account. By then, the VPN will be useless unless Binance turns a blind eye to this.

I feel sorry for the cryptocurrency world in the next decade, though it is for the good of all but it would be so controlled by the government one way or another and this could be partial if the citizens of some countries are enjoying it while others can't.

By the way, when the account is locked, where will the money of the customer go?

[Potato Chips]

By the way, when the account is locked, where will the money of the customer go?

It will be used for the next company outing, just kidding! lol

With binance, there's a possibility, they'll just switch your account to withdraw-only mode so you can still get your funds out, though you may have to use a VPN once an IP block has been implemented.

But this doesn't meant that people can take their sweet time on withdrawing their funds since policies can be fickle AF, who knows people may have to go through nightmare next time they attempt to do so.

[Z-tight]

I think it's better to transfer all of my funds to hardware wallets or other exchanges. If you want to keep your funds safe, I suggest you do the same.

An exchange should not be where you store your funds in the first place and you should be lucky you didn't lose it to an exchange hack, neither was it confiscated, but to suggest moving it into another exchange shows you are either not aware of the recent events regarding centralized exchanges and lending and earning platforms or you don't understand the risks you are taking.

It has been repeated for so long in this forum that not your keys, not your coins. Move your funds into your self custodial wallet and do not trust any third party to take custody of your keys.

[albon]

Just yesterday after the Indian government announced the termination of 9 crypto exchanges in the country including Binance, the Russian users has also be given today (29th Dec) ultimatum to withdraw their assets from the exchange according to the source below
https://www.rbc.ru/crypto/news/658d77a09a7947d1b6022968
Should this call for worries?

If users are able actually to make withdrawals, then there is nothing to worry about. Frankly, this unfair decision was truly unfortunate for Indian traders & investors. Still, it was an expected decision in light of the fact that crypto is not regulated in India and is not legal. And if I am not mistaken, the Reserve Bank of India had called for a ban on cryptocurrencies before and claimed it was like gambling. Perhaps the ban on the nine CEX platforms in India might be challenging for the customers of these platforms, but it is not the end of their journey in this field. The more cryptocurrencies are fought against, the more resilient they become. And Indians will be able to find other regulated platforms, alternatives, and viable solutions. What I see is that the centralized platforms are the ones facing the most significant loss, as they have lost a substantial user base in populous countries like India.

[Alpha Marine]

If after all that has happened with exchanges, folks still leave their coins on exchanges then they should be worried. And it's not just Binance users but all CEX users.
How do people trust CEX enough to a level of comfortably leaving their Bitcoins in them?
Treat CEX like a marketplace if you must use it. You go there, trade your coins, and withdraw the coins to your wallet. That way, no matter what happens to the exchange you won't be too affected.

[dansus021]

Should Binance users be worried over the exchange? Just opinion when you put money on centralized exchange then you should worried about it, especially in this case binance has struggled to fight with the SEC and CZ to step down from the CEO position.

Tho Binance is such a big exchange and what happened to binance might sake the world of cryptocurrency. according to coingecko and coinmarketcap the binance still at the top of number one exchange in the world

[YOSHIE]

Should this call for worries?

The Binance exchange has recently become a special concern for its users, apart from India, closures and bans on Binance have occurred in several other countries such as Canada and several other countries, The current case is almost the same as what happened in Belgium. The authorities also ordered Binance to stop operating there for various reasons.

I saw the news about Binance in India a few weeks ago, regarding the government's firm action to block foreign crypto exchanges operating there, not only did it happen to Binance, such as Kucoin, Gate.io and several others were also treated the same way, I'm sure the Indian government is doing all that and has reasons for the decisions it is making, for me and considering several sources that I know, of course you need to worry about the current situation, because government has full right to block websites operating illegally in their territory, my suggestion I just switch to local WazirX exchange, maybe it's safe for crypto users in india.

[EarnOnVictor]

Should Binance users be worried over the exchange? Just opinion when you put money on centralized exchange then you should worried about it, especially in this case binance has struggled to fight with the SEC and CZ to step down from the CEO position.

Tho Binance is such a big exchange and what happened to binance might sake the world of cryptocurrency. according to coingecko and coinmarketcap the binance still at the top of number one exchange in the world

As an exchange which is centralised, fine, one can be worried as your coin is not controlled by you since the company can do and undo with your money. Other than that, you have nothing to be worried about unless for the insolvency of the company, that's if it is stressed, but it is not.

What you believe should cause worry in Binance can actually cause it because this is not the first time that a company will have issues with government agencies and get fined, and even their top officials go to jail. Binance is a multibillion-dollar company and so is the CZ who founded it. Their worth is far bigger than the fine of the SEC, so there is no issue here. The company continues to operate fine just like the other companies that were fined before it.

Even the biggest banks in the world often have their fair share in regulatory fines, so it is no big deal. Also, as you can see now, the operation of Binance continues as if nothing happened, this is even as the BNB which could be argued to be the company's stock is up again.

[Yamane_Keto]

Should Binance users be worried over the exchange? Just opinion when you put money on centralized exchange then you should worried about it, especially in this case binance has struggled to fight with the SEC and CZ to step down from the CEO position.

You do not have to leave any crypto in Binance if you do not want to trade. You can trade with an amount of 1% to 3% of your entire investment and withdraw profits periodically to your cold storage, as short-term trading with a rate of 1% to 3% will not pose a problem if you lose it all, in the worst case scenario make the percentage 20%.
For long-term trading such as BTC/USDT, you need to deposit and withdraw currencies after conversion and then do this every few months.

Tho Binance is such a big exchange and what happened to binance might sake the world of cryptocurrency. according to coingecko and coinmarketcap the binance still at the top of number one exchange in the world

This is true, but if a problem occurs, it may take years to recover the money, and you may not be able to do that, and the basis of cryptocurrencies is that you should not trust a third party.

[KingsDen]

Just yesterday after the Indian government announced the termination of 9 crypto exchanges in the country including Binance, the Russian users has also be given today (29th Dec) ultimatum to withdraw their assets from the exchange according to the source below
https://www.rbc.ru/crypto/news/658d77a09a7947d1b6022968
Should this call for worries?

The world of internet is ominous and as long as internet is alive, no country can totally control what her citizens do. There could be rules but there must surely be rule breakers. If a whole country sanctions an exchange, it should be of a great concern to the users of that exchange. But if such and exchange is big enough, a country could be missing out or starving her citizens of some special services. CZ is a crook and also smart human being, he has succeeded in propelling Binance to the highest level of the exchanges pyramid. So, it will take much more work to drag binance down.

 

Should Binance users be worried over the exchange? Just opinion when you put money on centralized exchange then you should worried about it, especially in this case binance has struggled to fight with the SEC and CZ to step down from the CEO position.

Tho Binance is such a big exchange and what happened to binance might sake the world of cryptocurrency. according to coingecko and coinmarketcap the binance still at the top of number one exchange in the world

Anyone leaving huge some of money on exchanges should be weary is becoming obsolete. No matter how often people have lost funds on exchanges, they still prefer and enjoy leaving funds on exchanges. But I am not sure that binance is failing tomorrow.

[dansus021]

Should Binance users be worried over the exchange? Just opinion when you put money on centralized exchange then you should worried about it, especially in this case binance has struggled to fight with the SEC and CZ to step down from the CEO position.

You do not have to leave any crypto in Binance if you do not want to trade. You can trade with an amount of 1% to 3% of your entire investment and withdraw profits periodically to your cold storage, as short-term trading with a rate of 1% to 3% will not pose a problem if you lose it all, in the worst case scenario make the percentage 20%.
For long-term trading such as BTC/USDT, you need to deposit and withdraw currencies after conversion and then do this every few months.

10-20% I think its safe allocation to put on exchange just use as a trade only and I agree with you. when we take profit just withdraw it again.

Tho Binance is such a big exchange and what happened to binance might sake the world of cryptocurrency. according to coingecko and coinmarketcap the binance still at the top of number one exchange in the world

This is true, but if a problem occurs, it may take years to recover the money, and you may not be able to do that, and the basis of cryptocurrencies is that you should not trust a third party.

That is why I am saying that if there something happens on binance let's say binance had the same issue with fix there will be a blood bath in crypto industry. and binance might notice it carefully so I just hope that is not gonna happen.

and it will take year to recovery same as ftx and same as mtgox

[Kavelj22]

Regarding the possibility that Binance may agree to provide information regarding its users in countries that have not granted Binance an activity license, or may take measures against it, as India recently did, due to Binance’s incompatibility with its internal policies;
 
It is unlikely that Binance will agree to enable any data with any of the countries that have not granted Binance an official license to operate, even in cases where there are suspicions transactions or money laundering.  We are accustomed to Binance taking the initiative to deal with the incident on its part and merely imposing the necessary measures on its part, but we have never heard that Binance allowed any party to access user data or that an official request was submitted to it to do so.
We can think of it from a utilitarian perspective as well. So what would force Binance to deal with any government, especially if the country that government represents does not represent a good market for Binance? If countries are unable to restrict the activity of their citizens in the way they want, Binance is not obliged to deal with the matter as if it were guilty. Any government can block access links to any platform, as India did recently.

[khaled0111]

..

Unfortunately, this is not how things work in real word. In real world, there is what we call international laws and international agreements.
If country X bans service Y from operating withing their jurisdiction, then this service can not continue to provide its services in that country and ignore all their laws. Things doesn't work this way.
If you, as a service provider, refuse to comply with a certain country's laws then other countries will come after you, because of international agreements.