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Binance Addresses Mazars Saga, USDC Withdrawal Halt and Other ‘FUD’ Amid Heightened Crypto Exchange Scrutiny

Binance is addressing the worry, uncertainty and doubt (FUD) centered round crypto alternate platforms after the high-profile downfall of FTX.

In a brand new firm blog post, the world’s largest digital asset alternate by quantity explains why a few of the frequent narratives about it being financially unhealthy are unfaithful.

First, Binance addresses the rumor that it doesn’t have adequate reserves for customers to have the ability to withdraw cash.

“Binance’s enterprise mannequin may be very easy. The platform makes earnings primarily by charging transaction charges. The corporate’s belongings are fully separated from customers’ managed belongings. The capital construction is debt-free. Due to this fact, Binance’s monetary standing may be very wholesome. We’ve got sufficient capital reserves to cowl day by day operations. And get by any powerful cycles…

Binance is not going to embezzle customers’ funds for any transactions or investments, nor does it have any money owed, neither is it on the listing of collectors of any firm that has lately gone bankrupt.” 

Binance additionally brings up its short-term suspension of USD Coin (USDC) withdrawals, saying that customers may nonetheless withdraw different stablecoins at a 1:1 ratio whereas USD Coin was unavailable. The power to withdraw the stablecoin was halted for about eight hours final week so Binance may conduct a “token swap,” in accordance with a CNBC report.

“It needs to be emphasised that even throughout the suspension of USDC withdrawals, customers can nonetheless withdraw different stablecoins corresponding to BUSD, USDT [Tether], USDP [Pax Dollar], and TUSD [True USD] usually. Consumer funds are supported by 1:1, and there’s no liquidity drawback.”

Binance goes on to elucidate the Mazars situation, the place a distinguished auditing agency introduced that it will cease serving crypto purchasers, sparking a liquidation occasion. In response to the weblog publish, Mazars stopped working with all corporations working within the crypto house, not simply Binance.

“What must be defined and clarified is that [audits are] aimed on the monetary standing of the listed firm, not the centralized alternate chain.

The verification of the general reserve belongings on the chain is basically completely different from the verification of belongings on the chain that Binance is asking for. The on-chain verification of the general reserves of encrypted corporations is a really new discipline.”

Earlier this month, Mazars revealed that Binance has adequate reserves to again its customers’ Bitcoin (BTC).

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