#Binance p2p license

It is by no means certain that Israelis caught by Binance's marketing efforts are aware of the difficulties that they will encounter later on. Because the exchange is not regulated and does not comply with anti-money laundering rules, Israelis that trade on it find it very difficult to convert the money and put it back into the banking system. It's actually the very lack of bureaucracy that Binance offers that creates a problem for those who trade on its platform. 'Nevertheless, there are many additional regulatory problems in its activity that have not been solved.' Guy Seroussi, who specializes in cryptocurrencies. 'The lack of 'know your customer' procedures is one of the reasons that many countries restricted Binance's activities, and Binance therefore changed its policy last year,' says Adv. It now requires customers to provide identification documents as a condition for trading. In the past, Binance even allowed purchases of cryptocurrencies without any identification procedures. Market estimates put the number of Israelis who have carried out transactions via Binance at about 200,000. It offered a large selection of currencies, unlike the local exchanges that mainly focus on Bitcoin and Ethereum.Īll this made Binance extremely attractive, and it became one of the most popular exchanges in Israel, particularly in the past couple of years, during which cryptocurrencies have started to become part of the portfolios of small investors, who saw Bitcoin soaring in value and didn't want to be left behind. In Israel, Binance set up a website in Hebrew with marketing aimed at Israelis, and a matching trading app in Hebrew, and allowed crypto purchases cleared through credit cards in shekels. In recent years, Binance has targeted Israeli investors, in the same way as it operates in other countries, but unlike leading international exchanges such as Coinbase and Kraken (both of which are regulated), in which an Israeli who wants to trade goes into the international platform. Israel Tax Authority targets cryptocurrency profits Binance has also issued two currencies: a stable currency linked to the dollar, and a currency called BNB, which is one of the ten leading cryptocurrencies in the world, with a market value of some $60 billion.

It offers a trading exchange, DeFi (decentralized finance) services, futures trading, investment in leveraged financial assets, and so on. Binance is one of the exchanges that are rapidly expanding the offerings of assets traded on them, and the claim is that some of these assets are actually securities.Īs a trading platform, Binance is a one stop crypto shop. These latter currencies are considered to be, in effect, securities, and various regulatory permits are required before they can be offered to the public.

#Binance p2p license

These difficulties include lack of a license to operate in a country, failure to abide by money laundering prevention and 'know your customer' rules, claims of manipulation, and the claim that the exchange offers currencies that are in effect securities, without appropriate procedures.Ĭryptocurrencies are of two broad types: currencies that are considered investment assets, mainly use for accumulating value and for transfers, and currencies that offer additional functions such as voting rights, right to participate in the profits of the project that issued them, and so on. It has, however, run into difficulties with more and more regulators. Binance said that it did not want to fix its residence in any one place, but to be decentralized, in the same way as the market in which it operates is decentralized.

It was founded in China, but left there when Chinese regulators banned crypto activity in the country. Binance is the world's largest crypto exchange, with 30 million customers, and a complicated and elusive ownership structure. Why is this happening, and what are the implications for Israelis who have invested via this exchange?īinance was founded in 2017 by Changpeng Zhao, who serves as its CEO, and who is one of the wealthiest people in the world.

It was preceded by many other countries, among them the US, the UK, Canada, Germany and several countries in the Far East. Israel is not the only country in which the authorities have intervened in Binance's activity.