- June 10, 2024
- Posted by: [email protected]
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Binance, the leading cryptocurrency exchange by daily trading volume, has achieved a remarkable milestone, reaching 200 million global users. On June 8, Binance celebrated this achievement across its social media channels, presenting the 200 million user mark as a significant step towards their ambitious goal of onboarding one billion users—approximately one in every eight people on Earth. While the claim of having the highest number of users among exchanges is yet to be independently verified, it underscores the platform’s dominant position in the industry.
In 2022, Binance reported a user base of around 130 million. By 2023, the exchange would have added 40 million more users, bringing the total to 170 million. Impressively, in the first half of 2024 alone, Binance has already onboarded at least 30 million new users. If this growth continues, the exchange is on track to reach 300 million users by 2026, assuming the industry and company trends remain consistent.
To put Binance’s user base into perspective, research from Triple-A indicates that the global cryptocurrency consumer base reached 562 million people in 2024, marking an increase of 142 million users compared to the previous year. This means that Binance’s users represent approximately 36% of the global cryptocurrency user base, highlighting the platform’s significant influence in the market.
In addition to the impressive user count, Binance achieved another notable milestone earlier this year. In March, the company reported surpassing $100 billion in user assets under custody. On average, each user has around $500 worth of assets stored on the platform. This level of custodial holdings signifies a high degree of trust and reliance on Binance’s security and operational capabilities by its users.
Despite these achievements, Binance has faced significant legal challenges. Founder and former CEO Changpeng “CZ” Zhao was recently imprisoned on fraud charges, casting a shadow over the company. CZ is reportedly remorseful for his actions and is serving his sentence in a minimum-security facility in California. Nevertheless, Binance has continued to operate and expand, demonstrating resilience in the face of adversity.
In May, the Financial Intelligence Unit of India (FIU-IND) announced that Binance had successfully registered with the regulatory body, marking its return to the country after overcoming previous regulatory hurdles. Additionally, Binance obtained a license from Dubai’s regulator, VARA, enabling the platform to cater to retail clients as well as qualified and institutional ones. The licensing process involved CZ relinquishing voting control of the Dubai unit, as reported by Bloomberg.
Furthermore, earlier this year, Binance launched its joint venture crypto exchange Binance Thailand, in collaboration with Gulf Innova, a subsidiary of Gulf Energy Development. Binance Thailand, abbreviated as Binance TH, offers a platform for digital asset exchange services with Thai baht trading pairs, further expanding Binance’s global reach.
Despite its growth, Binance has faced increasing regulatory scrutiny worldwide. Last year, the Commodity Futures Trading Commission (CFTC) filed charges against Binance for allegedly operating an illegal digital asset derivatives exchange and evading federal laws. Similarly, the US Securities and Exchange Commission (SEC) charged Binance Holdings LTD and ex-CEO Changpeng Zhao (CZ) for allegedly operating unregistered exchanges, broker exchanges, clearing houses, and engaging in the unregistered offer and sale of securities.
These regulatory challenges underscore the complex landscape that Binance operates in, reflecting both its significant impact on the global cryptocurrency market and the ongoing need to navigate diverse regulatory environments. The exchange’s ability to grow and adapt amidst these challenges will be crucial to its future success and stability.
