What is Binance?

  • Definition: It is a cryptocurrency exchange platform that facilitates the buying, selling, and trading of hundreds of digital assets.

  • Market Position: It is by far the largest exchange in the world in terms of daily transaction volume. Its headquarters has historically been mobile, reflecting the global and decentralized (or sometimes controversial) nature of the sector.

  • Foundation: It was founded in 2017 by software developer Changpeng Zhao (known as "CZ").

2. Key Products and Services (The Ecosystem)

Binance has grown to become a complete ecosystem that goes far beyond simple trading. Notable features include:


  • Centralized Exchange (CEX): Its main product for spot trading and derivatives.

  • Binance Coin (BNB): The native cryptocurrency of its ecosystem. Originally a token for paying discounted fees, it now powers its own blockchain and has multiple uses.

  • Binance Pay: A service that allows users to pay for goods and services with cryptocurrencies, with automatic conversions to local currency (as implemented in Argentina with QR payments).

  • Binance Chain / BNB Chain: Its own decentralized blockchain network, which supports smart contracts and is a direct competitor to Ethereum for DeFi (Decentralized Finance) projects.

  • Earning Products: Offers various options for users to earn returns on their cryptocurrencies (staking, loans, etc.).

3. The Challenge of Regulation and Controversies

This is a crucial aspect and of high journalistic interest. Binance has consistently been in the spotlight of regulators worldwide:


  • Regulatory Actions in the U.S.:

    • The SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission) in the U.S. have filed lawsuits against Binance and CZ for allegedly operating without proper registration and for violations of the Bank Secrecy Act.

    • Agreement and resignation of CZ: In 2023, CZ pleaded guilty to money laundering charges, resigned as CEO, and the company paid a massive fine to resolve litigation with U.S. authorities (this marked a turning point for the company).


  • Local Regulations (Example Argentina): Mentions how the exchange has attempted to adapt to regulatory frameworks like the CNV (National Securities Commission) in Argentina, which involves reporting user movements, generating debate about privacy and the justification of funds.

  • The Shift to a Compliance Model: After the fines, the company has tried to change its image, focusing on transparency and regulatory compliance globally (such as the MiCA regulation in Europe).

4. Impact and Future Perspectives

  • Power and Influence: Given its market share, Binance's decisions and issues have a direct and significant impact on the entire cryptocurrency market (the so-called "too big to fail" effect).

  • The New Era without CZ: Analyzes how the change in leadership and focus on compliance are redefining the future of the company and the crypto industry in general.