The year 2022 is here for the crypto sector one to forget in a hurry. Naturally, we started the year with weak bitcoin price performance, which was followed negatively after the Terra Protocol implosion. This was followed by several stock markets crashing, with the failure of FTX being the black icing on the cake. Now there seems to be some doubts about the liquidity of Binance.
Binance in trouble
Let’s hope it’s a storm in a teacup, but Binance is also all on deck right now. People welcome huge quantities bitcoin and other cryptocurrencies on Changpeng Zhao’s exchange platform as there are some doubts about the stocks from Binance.
Changpeng Zhao calls sure that all is well for the stock market and that people need not fear, but the question is how reliable these claims are. In principle, Binance is a fairly opaque company, where 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 gamble with customer funds to make sufficient profits. If Binance’s leadership hasn’t been too greedy, there shouldn’t be anything wrong in practice. Unfortunately we never know for sure.
Return to the safe Netherlands?
Many people nowadays choose to play it safe and bring their crypto assets to the Netherlands. In the Netherlands, exchange platforms have to comply with the fairly strict regulations of De Nederlandsche Bank. It is not permitted to operate as a cryptocurrency exchange in the Netherlands without a licence.
In this regard, you could say that your funds are, at least from that point of view, safer with parties like Coincommerce In the Netherlands. Trading platforms like Coincommerce it may not be as spectacular and big as Binance, but there is clarity about the people behind the platform.
Also, you know for a fact that a lawsuit is one of the possibilities, if something goes wrong. One can never be sure, of course, but choosing a Dutch party in the midst of all the turmoil that has now occurred can only be a wise decision.
