World’s leading cryptocurrency exchange Binance has reported a 30% surge in its user base in 2023, amid regulatory challenges and the step down of the company’s CEO Zhao Changpeng.
The exchange’s current CEO Richard Teng said that the significant growth in Binance’s user base signifies strength and a positive outlook as the company looks past its regulatory hurdles with regulators.
In 2023, Binance welcomed more than 40 million users saw steady growth in its key services, and introduced new products and features built for the next stage of the blockchain industry’s development.
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These expansions indicated Binance’s successful penetration into various segments of the crypto market, appealing to a broader range of users. The interest from institutional investors also saw a notable rise, as disclosed by the CEO, highlighting the growing mainstream acceptance of cryptocurrency as a viable asset class.
2023 was indeed a significant year for Binance in terms of regulatory compliance. The company allocated $213 million towards compliance measures, marking a 35% increase from the previous year.
This investment was directed towards enhancing surveillance against wash trading on the exchange and NFT marketplaces, developing an in-house case management system for transaction monitoring, and conducting a security audit completed recently.
These measures were part of Binance’s broader strategy to align with regulatory expectations, especially following the settlement with U.S. authorities.
The agreement included a hefty fine for violating U.S. banking laws and the implementation of a U.S. government-approved compliance monitor for the next five years. This commitment to compliance is a response to past challenges and a proactive measure to ensure future regulatory alignment.
In the same year, Binance Feed evolved into Binance Square, a social platform designed to be the single touchpoint for the Web3 content universe, facilitating the conversation and enabling everyone to generate compelling content. Over the past year, Binance Square went from 1,200 to 11,000 creators and from under 700K to 1.6M+ active daily users.
In addition to financial investment, Binance’s regulatory liaison team was actively engaged with global law enforcement, processing nearly 60,000 requests and conducting 120 training sessions. This level of engagement reflects the company’s dedication to collaborating with regulatory and law enforcement agencies, further strengthening its compliance posture.
CEO Richard Teng emphasized the company’s commitment to long-term stability and growth amid these developments.
Although crypto markets spent much of the year in recovery mode, Binance products and services enabling payments, real-world purchases, and gifting saw a steady rise in user numbers. More people use digital assets to pay for goods and services online and in-store, facilitated by a growing number of merchants supporting this functionality.
• The number of people who sent crypto to their loved ones using Binance Gift Card went up by a factor of 3.5 compared to last year.
• In 2023, the number of fiat currencies supported on Binance reached 69, with 30 fiat channels available to users across the globe.
• Binance P2P grew the number of payment methods and fiat currencies supported to 970 and 112, respectively, and facilitated 18% more trades between 39% more users than in 2022.
Throughout 2023, the crypto exchange continued to engage with regulators to ensure it meets the most rigorous standards in the jurisdictions where it operates. As of the end of the year, Binance disclosed that it held licenses, registrations, and authorizations in 18 jurisdictions around the world more than ever before.