Binance, the world’s largest cryptocurrency exchange, continues to operate, but regulators are enacting harmful regulations worldwide. As a result, the platform’s withdrawal limit was reduced from 2 BTC to 0.06 BTC today, and it followed the FTX exchange’s lead in lowering its leverage from 100x to 20x.
Last Sunday, FTX’s CEO, Sam Bankman-Fried, announced his plan to change the maximum permissible leverage for trading futures contracts, and Binance followed suit the next day. In addition, to prevent extra complications in the escalating wave of disputes with foreign regulators, the crypto exchange’s management decided to cut the withdrawal limit from 2 to 0.06 bitcoins.
The modifications in the withdrawal limit will not be felt immediately by active exchange participants but rather in stages from August 8 to August 23. Simultaneously, if the client passes the KYC check, his withdrawal limit will be increased to 100 BTC.
In addition to the limits, Changpeng Zhao chose to provide a “positive” to the crypto community by stating that Binance is open to considering candidates for the CEO role. Many attendees were taken aback by the news, but Zhao quickly reassured them, saying that the company does not aim to replace the CEO immediately but hopes to find a qualified candidate with vast compliance experience. With this measure, the exchange aims to show that regulatory compliance is still a major concern.
Furthermore, according to Binance’s CEO, the CEO should not “sit up” in his position for more than ten years. Instead, he defined the best management term for the company as a five-year “life cycle.” Otherwise, the organization’s dynamics will be quickly disrupted. Zhao reiterated after these statements that he had no intention of leaving the exchange and that he did not need to remain in the manager’s role to participate in its fate actively.
Previously, regulators in many jurisdictions, including the UK, Japan, Singapore, Thailand, Malta, and the Cayman Islands, imposed various harsh limitations and made clear threats to Binance’s ability to conduct business.