Binance, the world’s largest cryptocurrency exchange by trading volume, is reportedly seeking to register with the Financial Supervisory Commission (FSC) of Taiwan as part of its efforts to comply with anti-money laundering (AML) regulations. According to a report by Bloomberg, Binance has submitted an application to the FSC for a license under the Money Laundering Control Act, which requires cryptocurrency service providers to implement AML policies and procedures, conduct customer due diligence, and report suspicious transactions.
Binance’s move comes amid increasing regulatory scrutiny and pressure from authorities around the world, who have expressed concerns about the potential use of cryptocurrencies for illicit activities such as money laundering, tax evasion, and terrorism financing.
In recent months, Binance has faced bans, warnings, investigations, or restrictions from regulators in countries such as the UK, Japan, Germany, Italy, Singapore, Canada, Thailand, and the US. The exchange has also been sued by users who claim they lost money due to technical glitches or poor customer service. Binance has repeatedly stated that it is committed to complying with local laws and regulations wherever it operates, and that it is actively seeking licenses and partnerships with regulators and industry associations.
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The exchange has also announced several initiatives to enhance its compliance capabilities, such as hiring former regulators and compliance experts, expanding its compliance team, implementing new verification requirements for users, and limiting some services or products for certain jurisdictions. By applying for a license in Taiwan, Binance may be hoping to gain a foothold in a market that is relatively friendly and open to cryptocurrencies. Taiwan has not banned or restricted cryptocurrency trading or mining and has adopted a “wait-and-see” approach to regulating the industry.
However, Taiwan is also part of the Asia-Pacific Group on Money Laundering (APG), a regional body that monitors and evaluates the compliance of its members with international AML standards. The APG has recently urged Taiwan to strengthen its oversight and enforcement of cryptocurrency service providers, as well as to enhance its cooperation and information sharing with other jurisdictions. Therefore, Binance may still face challenges and hurdles in obtaining and maintaining a license in Taiwan, as well as in meeting the expectations and requirements of both local and global regulators.
Kraken Outpaces Coinbase as most Liquid US Exchange for Altcoins
In the fast-growing and competitive cryptocurrency market, liquidity is a key factor that determines the success and profitability of an exchange. Liquidity refers to the ease and speed with which traders can buy and sell assets without affecting the market price. Higher liquidity means lower spreads, faster transactions, and more accurate price discovery.
According to a recent report by CryptoCompare, a leading data provider for the crypto industry, Kraken has surpassed Coinbase as the most liquid US exchange for altcoins in July 2023. Altcoins are cryptocurrencies other than Bitcoin, such as Ethereum, Cardano, Polkadot, and many more. The report analyzed the top 25 altcoins by market capitalization and measured their average daily liquidity across 11 US-based exchanges.
The results showed that Kraken had the highest liquidity score of 784, followed by Coinbase with 760, Gemini with 603, and Binance.US with 491. The liquidity score is a metric that ranges from 0 to 1,000 and reflects the order book depth, bid ask spread, and trading volume of an asset. A higher score indicates a more liquid market. Kraken’s dominance in altcoin liquidity can be attributed to several factors, such as its wide range of supported assets, its innovative trading features, its low fees, and its high security standards. Kraken currently offers over 60 altcoins to its US customers, more than any other exchange in the country.
Moreover, Kraken allows traders to access advanced tools such as margin trading, futures trading, staking, and dark pool trading, which can enhance their trading strategies and returns. Additionally, Kraken charges some of the lowest fees in the industry, starting from 0% for makers and 0.16% for takers. Finally, Kraken is one of the most secure and reliable exchanges in the world, with a proven track record of protecting its customers’ funds and data.
As the crypto market continues to grow and diversify, altcoins are becoming more popular and valuable among investors and traders. According to CoinMarketCap, the total market capitalization of altcoins has increased by over 1,000% in the past year, reaching over $1.3 trillion as of August 2023. This represents about 60% of the entire crypto market cap. Therefore, having access to a liquid and efficient exchange for altcoins is essential for anyone who wants to participate in this exciting and dynamic sector.