The year 2022 is one for the crypto industry to quickly forget. Of course, we started the year with the weak price performance of bitcoin, which continued negatively after the implosion of the Terra protocol. This was followed by the collapse of several stock markets, with the bankruptcy of FTX as the black icing on the cake. Now there seem to be some doubts about Binance’s liquidity.
Binance in trouble
Let’s hope it’s a storm in a teacup, but Binance is also all hands on deck at the moment. People are withdrawing bitcoin and other crypto in large amounts from Changpeng Zhao exchange platform as there are some doubts about Binance’s stocks.
Changpeng Zhao naturally says that everything is fine with the stock market and that people need not fear, but the question is how reliable those statements are. In principle, Binance is a fairly opaque company, of which no one really knows how it is doing financially.
On the other hand, Binance is the most successful trading platform in the market. The gigantic volumes mean that Binance does not have to play with customers’ funds to make enough profit. If Binance’s leadership hasn’t been too greedy, then basically nothing should be wrong. Unfortunately we never know for sure.
Back to the safe Netherlands?
Many people nowadays choose to be on the safe side and bring their crypto assets to the Netherlands. In the Netherlands, exchange platforms must comply with the fairly strict regulations of De Nederlandsche Bank. It is not allowed to operate as a crypto exchange in the Netherlands without a license.
In that respect, you could say that your funds are, at least from that point of view, safer with parties such as Coinmerce in the Netherlands. Trading platforms like Coinmerce may not be as spectacular and large as Binance, but there is clarity about the people behind the platform.
In addition, you know for sure that a lawsuit is one of the possibilities, should problems arise. Of course you never have certainty, but choosing a Dutch party in the midst of all the unrest that has now arisen can just be a wise decision.