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If you thought the US dollar losing 97% of its value over the past 100 years was bad, imagine - you & your friends finally gather enough funds to make a sizeable team investment into the market.You create an account and deposit, signing into Binance as your preferred exchange. They allow up to 2BTC withdrawals daily for an unverified user for the first time. You're in a group so it's hard for one to take ownership of it all. You opt for non-KYC as its offered. You & your friends deposit everything, ready to trade as a team. After depositing the 2 BTC that you and all your friends collected together from your new jobs you just found and saved from, to begin investing as a group. You're PUMPED to begin making bank from these swings now. You gained experience for months testing methods. You wake up in the morning, ready to start a fresh day for trading on the market - but your friend, who is in pretty deep, has a change of heart and needs the cash back for something important. You go withdrawal. Blocked. Withdrawal limit reduced to 0.06 BTC per day. You're stunned. Your friend is livid. That's what just happened to users at Binance. CZ and team decided to close the doors on its users, as regulators started closing in on them, with barely any notice to the public before hand. Writing in a news bulletin:
The announcement goes on to note :
"Daily withdrawal limits will be adjusted to 0.06 BTC for accounts which have completed only Basic Account Verification. This change is effective immediately for new account registrations"
Basic Account Verification would consist of providing a phone number and email address to receive confirmation notices when engaging in account changes such as withdrawals, which are sent to confirm your account ownership using contact methods, in the event of fraudulent access. The previous limit for this account verification set at a 2 BTC daily withdrawal amount, totalling roughly $75,000 USD per 24H period, under the previous limits. With these new limits in place, basic verified accounts may only withdrawal per to $2,400 per day. One could only assume their account may face extra restrictions for regular daily withdrawals at the max limit.
Source: https://www.binance.com/en/support/announcement/d6457e23eb2e42f2b9c3ce44f46f9a6d Immediately after this notice was publicized, Binance went on to heavily decrease their margin trading limits for newer users registered in the past 30 days. Previous limits of 125x margin were dropped down to a staggering 20%. The sudden reduction in margin limits may signal that Binance is suffering a liquidity issue, as BTC prices begin falling, and users begin to withdraw funds from the exchange in waves as regulators begin closing in on the illicit trading operations performed on the platform, as reported by other media outlets recently. If you thought it was going to end there - it continues in downward in a spiral. You can almost sense what is happening at Binance HQ as they begin to scramble and start gathering their belonging as regulators and law makers close in more everyday on illicit operations in the crypto space.
Source:https://www.binance.com/en/support/announcement/57d68e2a247744aa980ab82f6708522d Binance finishes the day of announcements by sharing that they are investing in tax tracking technology for their users. Just when everyone thought Binance was the safe haven from lawmakers. Shortly after, rumours begin circulating of Binance and CZ seeking to hire a new C.E.O for the company, then quickly began backtracking on his statements.
You can draw your own conclusion based on all the public information available on the internet regarding the operations by this company. Personally, my opinion has always been - not your keys, not your coins. If you use exchanges, you agree that your funds are potentially no longer yours. But that doesn't justify these actions taken on their retail users who helped build the platform. Exchanges are in the business of making profits from each trade in micro sized shavings. They do not advertise just how profitable this business model is, otherwise they know you wouldn't participate as much. If you found value from the information in this article, consider donating below using the Money Button.